Match the Following Descriptions and Terms

question 213

Multiple Choice

Match the following descriptions and terms
-The downsides of capitalism are mitigated by government action, including a very strong social safety net

• A) Capitalism
• B) Socialism
• C) Social democracy
• D) Corporation
• E) Corporate capitalism
• F) Work establishments
• G) Firm
• H) Conglomerates

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Definitions:

Borrowing Capacity

Borrowing capacity is the maximum amount of credit that a person or organization can obtain, determined by lenders based on the borrower’s financial health and credit history.

Outside Funds

Capital sourced from external investors or institutions, outside of the company’s existing financial resources, used for expansion, operations, or investment.

Debt

Money that is owed or due to be paid to someone else, often resulting from loans or credit.

Equity

Equity represents the value of an owner's interest in a property or business, after deducting liabilities.