If Profit-Seeking Entrepreneurs Are Going to Be Successful, They Must

question 144

Multiple Choice

If profit-seeking entrepreneurs are going to be successful, they must

• A) produce a product that the consumers value more than the resources required for its production.
• B) produce the product more cheaply than their rivals regardless of quality.
• C) maximize the salaries of high-level management so they will be able to attract people who will work hard.
• D) charge a higher price than their competitors so they can make economic profits in the long run.

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Definitions:

CCA Class

In Canadian taxation, a way to categorize depreciable properties for the purpose of Capital Cost Allowance calculations.

Break-Even Lease Payment

The lease payment at which the net present value of leasing costs equals the net present value of purchasing the asset.

Cost Of Debt

The effective rate that a company pays on its total debt, acting as a measure to understand the financial health and leverage of a company.

CCA Class

Refers to the Canadian tax system's categorization of depreciable property into classes, with each class having its own rate for capital cost allowance purposes.