Which of the Following Best Describes Assets Paid to Owners

question 39

Multiple Choice

Which of the following best describes assets paid to owners of a company as a return for their initial investment?

• A)payables
• B)compensation contracts
• C)dividends
• D)interest

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Definitions:

Government Borrowing

The process by which a government finances its expenditure by borrowing money, typically through issuing bonds.

Public Expenditures

Expenses made by the government for the development, maintenance of public services, and to support economic activities.

Crowd Out

A phenomenon where increased public sector spending reduces or eliminates private sector spending in the same market, often through higher interest rates or available financial resources.

Taxes

are compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.