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Capital Is a Factor of Production

question 62

Multiple Choice

Capital is a factor of production.Which of the following is an example of capital?
i.$1,000 in money
ii.100 shares of Microsoft stock
iii.$10,000 in bonds issued by General Motors
iv.a drill press in your local machine shop


Definitions:

Bring Suit

To initiate a legal action against someone in a court of law.

Investment Securities

Financial instruments, such as stocks or bonds, in which individuals or entities can invest with the expectation of earning a return.

Transfer

The act of moving or conveying something from one place, person, or entity to another.

Capital Surplus

The amount of equity in a company that is derived from contributions by shareholders in excess of the par value of the shares.

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