Answer the following questions true (T) or false (F)
1. When a business is set up as a partnership, the owners of the business face unlimited liability.
2. The only type of business that faces unlimited liability is a sole proprietorship.
3. In the United States, partnership profits are taxed at the business level and then are taxed again as personal income in the form of dividend payments.
1. TRUE
2. FALSE
3. FALSE
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"When you purchase $1,000 of stock in Microsoft, your purchase is an investment and hence is part of GDP." Is this assertion correct? Explain your answer
What will be an ideal response?
The classic examples of natural monopolies over the years have been
A. public utilities. B. auto manufacturers. C. retail trade. D. agriculture.
Money prices are an extremely effective device for promoting social cooperation because
A) most people want money more than they want anything else. B) people are basically selfish. C) scarcity can be eliminated through appropriate changes in money prices. D) they don't change rapidly when circumstances change. E) they help to clarify the options available to people.
A market demand schedule for a product indicates that
A) as the product's price falls, consumers buy less of the good. B) there is a positive relationship between price and quantity demanded. C) as a product's price rises, consumers buy more of the good. D) there is a negative relationship between price and quantity demanded.