QUESTION 1 1.1 Answer the following questions:
1.1.1 From the four factors of production, which one is the engine behind
production process?
(1)
1.1.2 Expenditure by business on capital goods is known as what?
(1).
1.1.3 Uneven distribution of natural resources often leads to countries trading
with one another, explain how.
1.1.4 Educated and trained workers tend to be more productive in any working
environment, explain what productivity means.
(2)
1.1.5 Why is capital formation important to the South African economy? (6)
[12]
ESTION 2
(2)​

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld