Shontae wants to start a pet hotel and is thinking of setting it up as a partnership with her sister Victoria. What are the advantages and disadvantages she will face by setting up the business as a partnership as opposed to a sole proprietorship or a
corporation?
What will be an ideal response?
As a partnership, Shontae has the advantages of being able to share the work and risks involved with the business. The disadvantages include unlimited personal liability and the limited ability to raise funds (as are true with a sole proprietorship as well).
You might also like to view...
Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars Sold Trucks SoldLarry105Joe99Ralph312Based on last month's data, ________ has an absolute advantage in selling cars and ________ has an absolute advantage in selling trucks.
A. Joe; Joe B. Ralph; Larry C. Larry; Joe D. Larry; Ralph
In the early 1990s Intel produced a 486 microchip for personal computers that contained a math co-processor that increased its speed of performing calculations and other operations
After a time Intel decided to disable the coprocessor on large numbers of their chips before sending them out for shipment and sale. What could have been the motive of Intel to deliberately reduce the quality of some of its chips?
Monopolistic competition is similar to monopoly in that: a. firms face perfectly elastic demand curves
b. firms sell products for which there are no close substitutes. c. there is relatively free entry and exit. d. firms have some influence over the product price.
Which of the following is characteristic of firms operating in an oligopoly market?
a. either homogeneous or differentiated products b. mutual interdependence among firms c. significant barriers to entry d. All of the above characterize oligopoly firms.