How can a partnership raise funds needed for firm expansion?
What will be an ideal response?
By retaining earnings, taking on additional partners, or borrowing from relatives, friends, or a bank.
You might also like to view...
In the circular-flow diagram, which of the following items flows from households to firms through the markets for the factors of production?
a. goods and services b. land, labor, and capital c. dollars spent on goods and services d. wages, rent, and profit
Figure 2-9
Assume that the publishing industry produces novels and textbooks, as shown in the production possibilities frontier in . Moving from point H to G, the opportunity cost of those five additional textbooks equals
a.
0.5 novels
b.
10 million novels
c.
3 novels
d.
8 novels
e.
2 novels
Adverse selection in employment is more likely when:
A. jobs require specific training. B. everyone is equally qualified for the job. C. people's abilities are easy to measure. D. people's abilities are difficult for potential employers to observe.
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.