Which of the Following Is a Basic Source of Capital

question 189

Multiple Choice

Which of the following is a basic source of capital for a firm ?

• A) short-term debt
• B) discounts from suppliers
• C) current liabilities
• D) common stock

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Definitions:

Economic Profits

Profits earned by a company after accounting for both explicit (direct) and implicit (opportunity) costs.

Marginal-Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit and the total quantity of the product produced.

Law of Diminishing

A principle stating that as more units of a variable input are added to fixed inputs, the additional output from each new unit of input eventually decreases.

Implicit Costs

The opportunity costs associated with a company's own resources, not directly paid for with cash but are the result of using assets instead of investing them elsewhere.