Which of the following is an advantage of a sole proprietorship?
a. the ability to pool resources
b. limited liability
c. double tax exemption of the firm's earnings
d. ease of organization
e. ease of raising funds
D
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Money is a medium of exchange in that
A) money is generally accepted for buying and selling goods and services. B) currency may be exchanged for gold at any national bank. C) other assets may be better or worse in facilitating exchange than money. D) it must maintain most of its value over time.
Equilibrium is defined as a situation in which
A) neither buyers nor sellers want to change their behavior. B) no government regulations exist. C) demand curves are perfectly horizontal. D) suppliers will supply any amount that buyers wish to buy.
If the reserve requirement was 15% and a bank customer makes a deposit of $500, the initial result would be:
a. a $75 increase in required reserves and a $425 increase in excess reserves. b. a $425 increase in required reserves and a $75 increase in excess reserves. c. a $75 increase in required reserves and a $3,333 increase in excess reserves. d. a $3,333 increase in required reserves and a $425 increase in excess reserves.
If consumption of a good by one person imposes costs on a party other than the producer,
a. the consumption creates a positive externality b. the good is a public good c. the consumption creates a negative externality d. too little of the good is produced from society's point of view e. the market will correct the problem if left alone