Which of the Following Is Correct with Respect to the Factors

question 28

Multiple Choice

Which of the following is correct with respect to the factors of production?

• A) The "labour" factor recognizes that it is importance to have labour unions to offset the power of management.
• B) "Capital" is a more important factor than "labour."
• C) As the Canadian economy has become larger and more complex, the importance of entrepreneurs has declined.
• D) Unlike land, labour, and capital, information can be shared without being diminished.
• E) Human resources is an example of the "natural resources" factor.

---

Definitions:

Straight-Line Method

The straight-line method is a depreciation technique that allocates an equal portion of the cost of an asset to each accounting period over its useful life.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds over a period of time.

Adjusting Entry

An accounting procedure for updating the records of unrecorded expenses or revenues to ensure accurate financial statements.

Straight-Line Amortization

A method of evenly distributing the cost of an intangible asset over its useful life.