Which of the Following Statements Regarding Capitalism Is False

question 41

Multiple Choice

Which of the following statements regarding capitalism is false?

• A) Capitalism is considered a controversial economic system.
• B) Economic decision-making is in the hands of individuals or enterprises, which make decisions with the goal of maximizing social welfare.
• C) Private ownership is fundamental to capitalism.
• D) Profit is a key motivator of corporate behaviour.
• E) Profit maximization is an important goal.

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Definitions:

Model Business Corporation Act

A set of statutory provisions designed to provide a standard legal framework for the formation, operation, and dissolution of corporations in the United States.

Preincorporation Subscription

An agreement by an individual to purchase shares in a corporation that is yet to be incorporated, showing early commitment to the entity's future.

Shareholder

An individual or entity that owns shares in a corporation, granting them certain rights, such as the right to vote on corporate matters and receive dividends.

Memberships

The state or condition of being a member or part of a society, club, or other group, typically entailing certain privileges or responsibilities.