Capitalism is the term for an economic system in which the means of production are held largely in private hands and the main incentive for economic activity is the accumulation of profits.
Capitalism is an economic system in which the means of production are privately owned by firms. Means of production include land, tools, technology, and so forth, which is needed in order to produce goods and services.
In a capitalist economy, capital assets such as factories, mines, and railroads can be privately owned and controlled by private sectors. Here the main incentive for economic activity by private sectors is to make profits.
Hence, the essential feature of capitalism is the motive to make a profit.
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Answer:
The answer is C.
Explanation:
Preferred shares is synonymous to debt. It has the characteristics of debt and equity. They are given preferential treatment. If a company liquidates, they will be settled before the common shares.
Out of all the options, option C. is correct. They have the right to receive dividends only in the years the board of directors declares dividends. This applies to both preferred shares and common shares. If the board of directors does not declare dividends, nobody receives.
Option A is wrong because they only receive dividend according to the number of shares they are holding in the company.
Option B is wrong because they receive shares only in the the board declares dividends.
Option D is also wrong.
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Answer:
The answer is letter A.
Explanation:
No, because the relevant cost of the new machine is $10,000 more than the cost of the old machine.
