Capital Is Considered One of the Factors of Production

question 44

Multiple Choice

Capital is considered one of the factors of production. What does capital include?

• A) machines, money, tools, and buildings
• B) money, land, labour, and entrepreneurship
• C) machines, tools, buildings, information, and technology
• D) an entrepreneur's freedoms

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Definitions:

Customer Purchase

A transaction where a customer acquires goods or services from a business.

Credit Terms

The conditions under which credit is extended by a lender to a borrower, including the repayment schedule, interest rate, and due dates.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred, ensuring compliance with the matching principle.

Condensed Worksheet

A summarized form of a financial worksheet used for internal management purposes.