Ralph Is a Plumber

question 169

Multiple Choice

Ralph is a plumber. Which of the following are included in his physical capital?

• A)the knowledge he learned on the job, and the tools he uses
• B)the knowledge he learned on the job, but not the tools he uses
• C)the tools he uses, but not the knowledge he learned on the job
• D)neither the knowledge he learned on the job nor the tools he uses

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Definitions:

Florists

Businesses or individuals specializing in arranging and selling flowers and ornamental plants.

Receivable

An amount of money owed to a company by its customers or clients for goods or services delivered but not yet paid for.

Inventory Increase

A rise in the quantity of products or materials that a company has available for sale or use, which is often an indicator of production levels or sales expectations.

Cash Discount

A reduction in the amount due by a buyer if payment is made within a specified period.