Which of the Following Is a Characteristic of Capitalism

question 69

Multiple Choice

Which of the following is a characteristic of capitalism?

• A) Collective ownership of property
• B) Cooperation
• C) No profit motive
• D) Collective goals
• E) Market competition

Grasp the process of assessing a business's financial condition through ratio comparison.

Comprehend the ethical handling of sensitive financial information.

Understand the various methods of business valuation.

Recognize the significance of tangible and intangible assets in business transactions.

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Definitions:

Market Value

Market value is the current price at which an asset or service can be bought or sold in a competitive and open market.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, and entitles the holder to vote on corporate matters and receive dividends.

Long-term Investment

Investments made with the expectation that they will yield benefits or appreciation over a period extending beyond one year.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.