A Primary Belief in the Mercantile System Was That ______________

question 88

Multiple Choice

A primary belief in the mercantile system was that ______________.

• A) merchants and traders should control the economy
• B) there was only a limited amount of wealth in the world and amassing it meant power
• C) the wealth of a state was the personal property of its Sovereign
• D) slavery was necessary to yield a profit
• E) social mobility was possible with economic increase

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Definitions:

Capital

The wealth, whether in money or other assets, owned or employed in business by an individual, firm, or corporation.

Withdrawal Account

An account from which funds can be withdrawn by the account holder; in the context of business partnerships, it refers to an account used by an owner or partner to draw funds from the business.

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period before transferring the net income to retained earnings.

General Ledger

A complete record of all financial transactions over the life of a company, organized into debits and credits across various accounts.