Which of the following is a valid difference between sole proprietorship and partnership?
a. Partnerships require a written agreement while sole proprietorships do not.
b. Partnerships require a state charter while sole proprietorships do not.
c. Partnerships generate lower profits than sole proprietorships.
d. Partnerships are characterized by unlimited liability, while sole proprietorships are not.
e. Partnerships consist of two or more partners sharing the responsibility of the firm, while sole proprietorship consists of a single individual.
e
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If a 10 percent rise in the price of bananas leads to a 20 percent reduction in the quantity of bananas demanded, then the price elasticity of demand is 0.50
a. True b. False
The Profit & Loss Statement lists:
a. Assets and Expenses b. Assets and Liabilities c. Net Income and Owner's Equity d. Income and Expenses
This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope.
Picking up the 20th bag of litter would:
A. be socially efficient, but would not be consistent with the actions of self-interested individuals. B. be socially efficient. C. create deadweight loss. D. increase total economic surplus.
The economic benefits of owning a home are greater when home prices are
A. falling and interest rates are high. B. rising and interest rates are low. C. rising and interest rates are high. D. falling and interest rates are low.