The payments to owners of capital include
A)interest and profits.
B)debt and taxes.
C)wages and salaries.
D)expenses and bonuses.
E)All of the above are correct.

Question

Quizplus · Accepted Answer

Payments to owners of capital typically include interest, which is paid to lenders who have provided funds to the business, and profits, which are paid to owners of the business (e.g. shareholders) as a return on their investment. Debt and taxes (B) are not payments to owners of capital, but rather are expenses that the business must pay. Wages and salaries (C) are payments to employees, not owners of capital. Expenses and bonuses (D) are also not payments to owners of capital, but rather are expenses that the business incurs.

The Payments to Owners of Capital Include