After Reading a Newspaper Article About Yet Another Bank Collapse

question 87

Multiple Choice

After reading a newspaper article about yet another bank collapse in the United States,Bill's grandpa asserted,"It's no wonder-when the capital development of a country becomes a by-product of the activities of bookies and speculators,things are bound to fall apart." What term in the text would apply to grandpa's point of view?

• A) stockbroker capitalism
• B) mafia capitalism
• C) casino capitalism
• D) industrial capitalism

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Definitions:

Fixed Manufacturing Overhead

These are the manufacturing costs that do not change with the level of production, such as rent, salaries, and insurance.

Inventories

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials to be consumed in the production process.

Deferred

Postponed or delayed, often referring to income or expenses that are recognized in a later accounting period.

Net Operating Income

The profit realized from a business's operations after subtracting all operating expenses except interest and taxes.