Torrie is thinking of starting up a small business selling hand-painted wine glasses. She asks her sister, Lisette, if she'd like to join her in setting up a partnership to start the business. What is one disadvantage in joining the partnership that

Lisette should consider?

A) Lisette should realize that her profits in the partnership will always be less than Torrie's profits, since Torrie had the idea to start the business.
B) Lisette should realize that, as an owner of the business, she will be personally responsible for the debts of the business.
C) Lisette should realize that only Torrie will be allowed to own stock in the business as the founding partner.
D) Lisette should realize that Torrie will have complete control over the business because it was her idea.


Answer: B

Economics

You might also like to view...

"Crowding out" refers to the decrease in ________ that may result from an increase in government spending

A) private investment B) imports C) private saving D) all of the above E) none of the above

Economics

The Japanese economy is stuck in a recessionary gap. The proper fiscal policy could include a(n)

a. decrease in taxes. b. increase in government purchases. c. increase in transfer payments. d. All of the above are correct.

Economics

_____ forces firms in a perfectly competitive market to sell their products at the prevailing market price

a. Pronounced barriers to entry b. The ability to raise prices to levels higher than the marginal cost of production c. A high degree of similarity with competitors' products d. Supernormal profits in the long run

Economics

In exhibit 10-2, the equilibrium level of GDP is

What will be an ideal response?

Economics