Which One of the Following Statements Is TRUE

question 97

Multiple Choice

Which one of the following statements is TRUE?

• A) Dead capital is most frequently found in countries with well-defined property rights.
• B) Dead capital is most frequently found in the most prosperous countries.
• C) It is easy for dead capital resources to be allocated to their best possible use.
• D) It is difficult for dead capital resources to be insured or traded.

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Definitions:

Retained Earnings

Retained earnings refer to the portion of net income that is kept by a company to reinvest in its business or pay down debt, instead of being distributed to shareholders as dividends.

Dividends

Disbursements issued by a company to its stockholders, typically sourced from the enterprise's earnings.

FOB Destination

A shipping term indicating the seller is responsible for the goods until they reach the buyer's specified location.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the cost and risk of shipping as soon as the goods leave the seller's premise.