An advantage of proprietorships is
A) the ease with which they can be formed and dissolved.
B) their ability to raise large amounts of equity capital.
C) the fact that their profits are not taxed.
D) the breadth of management expertise that comes from having a board of directors.
A
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The presence of information and transactions cost result in all of the following EXCEPT:
A) reduced efficiency of financial markets. B) higher returns for savers C) some funds not being lent at all D) borrowers need to pay more for funds
The Equivalent Variation for an increase in the price of a good is
A) the reduction in a consumer's income necessary to harm the consumer by as much as the price increase. B) the increase in a consumer's income necessary to eliminate the consumer's harm from a price increase. C) the change in consumer surplus resulting from a price increase. D) the amount of money a consumer would accept to be subject to a price increase.
If a detrimental externality is being produced in the course of producing a good, then
A. P > MSC. B. MSC < MPC. C. incidental costs are negative. D. output is inefficiently large.
Before the early 1970s, we ran a positive trade balance
A. in both merchandise and services. B. in neither merchandise nor services. C. in merchandise, but not in services. D. in services, but not in merchandise.