Which of the Following Is an Advantage of Private Ownership

question 113

Multiple Choice

Which of the following is an advantage of private ownership?

• A)It protects businesses from volatile economic conditions.
• B)It helps businesses take advantage of state subsidies.
• C)It eliminates competitors and reduces pressure to lower production costs.
• D)It gives entrepreneurs an incentive to search for better ways of serving consumer needs.

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Definitions:

Assembly Department

A division within a manufacturing plant where components are assembled into final products, often involving various processes and equipment.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the costs are incurred based on estimated costs and activity levels.

Direct Labor-Hours

The total hours worked by employees that are directly involved in the production of goods or the provision of services.

Machine-Hours

A measure of the amount of time machines are operated in the manufacturing process, often used to allocate overhead costs.