Which of the Following Is (Are) True

question 28

Multiple Choice

Which of the following is (are) true?

• A) The returns to capital are spread over the period in which capital is used.
• B) The returns to capital are certain.
• C) The choice to acquire capital is a choice to forego future consumption.
• D) All of the above are true.

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Definitions:

Entrepreneur

A profit-seeking decision maker who starts with an idea, organizes an enterprise to bring that idea to life, and assumes the risk of the operation

Profit

Reward for entrepreneurial ability; sales revenue minus resource cost.

Tangible

Refers to physical assets or goods that can be seen, touched, and valued, as opposed to intangible assets like intellectual property.

Service

An activity, or intangible product, used to satisfy human wants.