In a Simple Circular-Flow Diagram,firms Use the Money They Get

question 10

Multiple Choice

In a simple circular-flow diagram,firms use the money they get from a sale to

• A)pay wages to workers.
• B)pay rent to landlords.
• C)pay profit to the firms' owners.
• D)All of the above are correct.

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Definitions:

Partnership

A legal arrangement where two or more individuals share ownership of a business, including its liabilities and profits.

Cooperative

An association, which may or may not be incorporated, that is organized to provide an economic service to its members. Unincorporated cooperatives are often treated like partnerships for tax and other legal purposes.

Joint Venturer

An individual or entity that collaborates with another party in a joint venture, sharing in the risks and rewards of the business endeavor.

Breach of Loyalty

A failure to remain faithful to commitments or obligations, particularly in a fiduciary or trust-based context.