Unlimited liability means
a. a firm is always liable for damages when it is at fault
b. if a firm is sued, it has enough insurance to pay the damages
c. the owners are personally liable for all the debts of the firm
d. a corporation is not held liable for the stockholders' errors
e. a sole proprietor's own net worth cannot be used to pay debts
C
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A financial institution that wants a 5 percent real return on its loans and contemplates a 4 percent annual inflation rate should loan at a nominal interest rate of approximately
A) minus 1 percent. B) 1 percent. C) 9 percent. D) 15 percent. E) 20 percent.
For each of the following values of nominal GDP and real GDP, calculate the GDP price deflator
a) Nominal GDP = $600; real GDP = $800. b) Nominal GDP = $900; real GDP = $900. c) Nominal GDP = $1,200; real GDP = $1,000
What lessons from Latin American capital-market crises might have been useful to prevent, or at least minimize, the East Asian crisis?
What will be an ideal response?
If a price ceiling of $8 were placed in the market in the graph shown:
A. a shortage of 7 would occur.
B. a shortage of 15 would occur.
C. a shortage of 23 would occur.
D. a shortage of 8 would occur.