Adam Smith's Behavioural Assumption About Humans Was That People

question 44

Multiple Choice

Adam Smith's behavioural assumption about humans was that people:

• A)typically act irrationally.
• B)usually act in a rational, self-interested way.
• C)are consistently greedy.
• D)typically act randomly.

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Definitions:

Operating Leases

Operating leases are contractual agreements in which the lessee pays to use an asset for a specific period without gaining ownership, typically used for equipment and vehicles.

Capitalize

The accounting practice of recording a cost/expense as an asset, rather than an expenditure, thereby extending the recognition of its financial impact over the useful life of the asset.

Long-Term Liabilities

Financial obligations of a business that are due for repayment beyond the current fiscal year, including bonds payable, long-term loans, and lease obligations.

Current Liabilities

Financial obligations that a company is expected to pay within one year, including accounts payable, short-term loans, and other similar debts.