A Democratic Method of Management Can Be Accurately Described as Laissez-Faire

question 7

True/False

A democratic method of management can be accurately described as laissez-faire or permissive management.

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Definitions:

Net Investment

The total spending on new capital assets minus the depreciation on existing capital.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, reflecting a decrease in value over time.

Investing

Dispensing money with the anticipation of making an income or profit.

Interest Rate

The percentage charged on borrowed money or paid on invested capital, reflecting the cost of borrowing or the reward for investing.