Which of the Following Would Be Most Commonly Used for Long-Term

question 7

Multiple Choice

Which of the following would be most commonly used for long-term financing?

• A)insurance companies
• B)trade credit
• C)finance companies
• D)leasing companies

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Definitions:

Last Dollar Spent

The concept of allocating resources until the marginal utility of expenditure on each good or service is equal, maximizing utility.

Labor Productivity

A measure of the amount of goods and services produced by one hour of labor.

Capital-Intensive

A business process or industry that requires large amounts of capital investment in comparison to labor.

Average Product

The output per unit of a given input, typically labor, calculated by dividing total product by the quantity of that input.