Capital Is a Factor of Production

question 195

Multiple Choice

Capital is a factor of production.Which of the following is an example of capital?
i.$1,000 in money
ii.100 shares of Microsoft stock
iii.$10,000 in bonds issued by General Motors
iv.A drill press in your local machine shop

• A) i and ii
• B) ii only
• C) iii only
• D) iv only
• E) ii and iii

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Definitions:

Primarily Rental

This refers to income or property that is mainly used for rental purposes, often generating rental income for the owner.

Primarily Personal

Describes expenses or activities mainly for individual or non-business purposes.

Personal/Rental

Pertaining to property that is used for personal purposes at times and rented out at others, often affecting tax implications.

Schedule E

Schedule E is a form used for tax filing that reports supplemental income and loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests.