With Technological Progress, How Is the Golden Rule of Capital

question 38

Essay

With technological progress, how is the Golden Rule of capital defined in the steady state?

---

Definitions:

Ownership

The legal right or state of having complete control and possession over property, assets, or items, which includes the ability to use, manage, and dispose of them.

Business Judgment Rule

A legal principle that protects corporate directors and officers from liability for decisions made in good faith and in the best interests of the corporation, even if the decisions are ultimately unsuccessful.

Insolvent

A financial state in which an individual or entity cannot meet its debt obligations as they come due because its liabilities exceed its assets.

Stock Warrants

Securities that give the holder the right to purchase company stock at a specified price before a certain date.