Which of the Following Correctly Lists the Categories of Factors

question 88

Multiple Choice

Which of the following correctly lists the categories of factors of production?

• A) machines, buildings, land, and money
• B) hardware, software, land, and money
• C) capital, money, and labor
• D) owners, workers, and consumers
• E) land, labor, capital, and entrepreneurship

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Definitions:

Net Operating Income

Income from operations after deducting operating expenses but before interest and taxes.

Operating Assets

Assets utilized in the daily operations of a business to generate revenue, such as equipment, machinery, and buildings.

Minimum Required Rate of Return

The lowest acceptable return on an investment, determined by the investor's objectives, risks, and opportunities.

Division's Margin

The difference between the sales generated by a division and its direct costs, used to evaluate the profitability of the division.