When Considering the Factor Distribution of Income,which of the Following

question 131

Multiple Choice

When considering the factor distribution of income,which of the following income would go to owners of physical capital?

• A) Corporate profits
• B) Proprietor Income
• C) Taxes
• D) Wages

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Definitions:

Present Value Calculation

A financial process that determines the current worth of a future cash flow, stream of cash flows, or an investment, based on a specific discount rate.

Declining-Balance Depreciation

Declining-Balance Depreciation is an accelerated depreciation method that calculates higher depreciation expenses in the earlier years of an asset's life, decreasing over time.

Lease Liability

A financial obligation representing the present value of all future lease payments a lessee is committed to make under lease agreements.

Invests

The act of allocating resources, usually money or capital, in something to earn financial returns or gain profitable outcomes.