Here’s the answer to the last posted Mechanical Board Exam review questions on Engineering Economy.
1. It is the quantity of production when the income equals total cost.
B. Break-even point
2. The length of time required to recover the first cost of an investment.
B. Payback period
D. Payout period
3. Common term for the certificate of indebtedness
4. It represents ordinary share in ownership of the corporation’s capital without special guarantees of return.
C. Common stock
5. A type of bond where the name of the owner is recorded in the books of the corporation. Interests are periodically sent to him without claim action.
B. Registered bond
6. A type of business organization where two or more persons associate to engage for a business.
7. A type of business organization which is a distinct legal entity capable of business transactions like a real person.
8. In a partnership type of business, what will happen if one of the owners dies?
C. The partnership automatically dies
9. It is the decrease in value of a property due to the passage of time.
10. It is the length of time during which a property may be used for profit.
D. Economic life
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