For Capitalism to Operate Effectively, the Citizens of a Private

question 18

Multiple Choice

For capitalism to operate effectively, the citizens of a private enterprise economy must have certain rights. Which of the following would not be considered part of the Private Enterprise System?

• A) private property
• B) profits
• C) government assistance
• D) competition

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Definitions:

LCM Approach

The Lower of Cost or Market method, an accounting principle requiring inventory to be recorded at either its historical cost or market value, whichever is lower, to reflect potential losses.

Market Value

An estimation of the price at which an asset or company could be bought or sold in a current market.

IFRS

International Financial Reporting Standards represent worldwide accounting norms that facilitate the creation of financial statements.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards used for financial reporting and accounting.