Which of the Following Best Defines Capital as a Factor

question 329

Multiple Choice

Which of the following best defines capital as a factor of production?

• A) the gifts of nature that businesses use to produce goods and services
• B) the knowledge and skills that people obtain from education and use in production of goods and services
• C) financial assets used by businesses
• D) instruments, machines, and buildings used in production

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Definitions:

Current Ratio

A financial metric assessing a firm's capability to meet its short-term liabilities or debts due within a year.

Financial Information

Data related to the financial status and performance of an entity, including assets, liabilities, revenues, and expenses.

Equity Ratio

A financial ratio indicating the proportion of a company's total assets that are financed by shareholders' equity, showing the extent of ownership versus creditor financing.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, showing assets, liabilities, and equity.