Answer the following statements true (T) or false (F)
1. The biggest disadvantage of a sole proprietorship is the lack of distinction between the business and the owner.
2. In a partnership, each partner’s liability is limited to his or her contribution to the partnership.
3. The board of directors has unlimited financial liability for the debts of the corporation.
4. A corporation can raise money by selling stock or bonds.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
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To say that a firm is competitive in the labor market is to say that the firm
a. has little or no control over the number of workers it hires. b. has little or no control over the wage it pays its workers. c. is aggressive in pursuing the most skilled workers in the labor market. d. is aggressive in trying to keep its workers' wages low.
If short-run economic profits are greater than zero for firms in a monopolistically competitive market, in the long run we expect:
A. entry barriers to prevent competing firms from entering this market. B. the demand curve for firms in the market to shift to the right. C. the average cost of production to decrease. D. the average cost of production to increase.
While economic regulation applies to ________ industries, social regulation applies to ________ firms
A) particular; individual B) particular; all C) all; individual D) utility; healthcare
An externality exists when
A) goods are sold in specific geographic locations. B) some of the benefits or costs associated with a good are borne by third parties. C) the government taxes a good. D) the government subsidizes a good.