Tim has a toenail clipping business that is a sole proprietorship. If he is sued for a botched pedicure
A. he will be taxed doubly.
B. all of his personal assets are at risk.
C. he has separation of ownership and control.
D. he has limited liability.
Answer: B
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Which of the following situations will shift a worker's labor supply curve to the left?
a. Higher nonlabor income. b. A lower wage rate, assuming the substitution effect dominates the income effect. c. New machinery that substitutes for labor and lowers its marginal product. d. A decrease in the marginal value of leisure.
A system by which firms assign their customers for collection purposes to regional banks that transfer funds to a central bank is known as:
A) A lock-box system B) A zero-balance account C) A wire transfer D) Concentration banking
Answer the following statement true (T) or false (F)
1) Innovation is the first discovery of a new product or production process; invention is the first successful commercial introduction of the product or process. 2) Diffusion is the first successful commercial introduction of a product, the use of a new method, or the creation of a new form of business enterprise. 3) Venture capital is another name for retained earnings. 4) The marginal cost to a firm of R&D expenditures is the market interest rate the firm must pay to obtain the needed financing. 5) A firm's optimal amount of R&D occurs where the marginal benefit of this activity exceeds marginal cost by the greatest amount.
For most consumers, the process of learning about the efficiency and durability of various brands of refrigerators can be considered
a. irrational b. unproductive c. a vocation d. nonmarket work e. costless