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Bob Works for a Firm That Produces Umbrellas

Question 102

Multiple Choice

Bob works for a firm that produces umbrellas. He receives payment for his labor. The firm wants to expand but lacks the capital needed for the expansion. Bob, a person of some means, provides the capital. What payment(s) does the firm now make to Bob?


A) rental payment for the loan of capital and wages for labor
B) wages for labor and profit for entrepreneurship in providing capital
C) interest for Bob's entrepreneurship in providing capital
D) profit for Bob's entrepreneurship in providing capital
E) wages for labor and interest payments for providing capital

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