Which of the Following Statements Is Incorrect with Regard to the Importance

question 33

Multiple Choice

Which of the following statements is incorrect with regard to the importance of colonies for mercantilist nations?

• A) They served as sources of inexpensive raw materials.
• B) They served as markets for higher-priced finished goods.
• C) They served as a source of military protection.
• D) They served as a source of profits for mercantilist powers.

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Definitions:

Fixed Asset

A long-term tangible piece of property that a firm owns and uses in its operations to generate income.

Book Value

The net value of a company's assets minus its liabilities and preferred stock, reflecting the amount that shareholders would theoretically receive if the company was liquidated.

Market Value

The up-to-date price at which transactions for assets or services are conducted in a marketplace.

Building Account

An account used in accounting to track the costs associated with the construction or purchase of a building.