A Farmer Uses Soil, Seeds, a Highly Skilled Foreman, Tractors

question 80

Multiple Choice

A farmer uses soil, seeds, a highly skilled foreman, tractors, and a barn to produce his harvest. Which factor of production is the farmer?

• A) entrepreneurship
• B) human capital
• C) natural resources
• D) physical capital

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.

Retail Company

A business entity that sells goods or commodities directly to consumers through various channels of distribution to earn a profit.

Credit Sales

Sales made on terms that allow the buyer to make payments at a later date, affecting the seller's accounts receivable.

Retained Earnings

The portion of net earnings not paid out as dividends but instead retained by the company to be reinvested in its core business or to pay debt.