Statement I: in a Centrally Planned Economy,consumers Do Not Have

question 237

Multiple Choice

Statement I: In a centrally planned economy,consumers do not have to consider prices when shopping.
Statement II: In a capitalist economy the three basic economic questions (what,how and for whom) are determined by the price mechanism.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

Understand the basics of working capital management and its significance in financial management.

Identify various sources of short-term financing and understand their uses and costs.

Identify and classify types of assets and liabilities in a business context.

Understand the concept and usage of commercial paper and other short-term financing instruments.

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Definitions:

Note Payable

A documented commitment to repay a certain sum of money, typically including interest, at a predetermined time in the future.

Cash Payment

This refers to a transaction where a payment for goods or services is made using cash or cash equivalents rather than credit.

FICA-Social Security

A U.S. government program funded by payroll taxes, providing benefits to retirees, disabled individuals, and survivors of deceased workers.

Employee Taxes Withheld

Amounts deducted from an employee's paycheck for taxes, including federal and state income tax and payroll taxes.