What Was the Purpose of the Medieval Guild System

question 53

Multiple Choice

What was the purpose of the medieval guild system?

• A)The guilds allowed urban workers to attain noble status.
• B)It restricted competition for urban workers.
• C)It was more important in the countryside.
• D)It was the most important institution for serfs.
• E)The guild insured a fief was controlled by a vassal.

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Definitions:

Operating Leverage

A gauge of the relationship between sales growth and the growth of operational earnings, showing the mix of fixed and variable costs within a business.

Financial Leverage

The use of borrowed funds to finance investments, aiming to increase the potential return to equity holders.

Business Risk

The exposure a company or investor faces from uncertainties that may impact its operations and profitability.

Financial Risk

The possibility of losing money or financial assets due to factors affecting financial markets, investment decisions, or company performance.