A single proprietorship is a form of business organization which:
a) has limited liability.
b) has unlimited access to money capital.
c) has a single owner but has directors who are responsible for the firm?s debts.
d) has one owner-manager who is personally responsible for the firm?s actions and debts.
e) allows easy transferability of ownership by the trading of shares.
Ans: d) has one owner-manager who is personally responsible for the firm?s actions and debts.
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Exhibit 4-2 Supply and demand curves
Beginning from an equilibrium at point E1 in Exhibit 4-2, an increase in demand for good X, other things being equal, would move the equilibrium point to:
A. E1, no change. B. E2. C. E3. D. E4.
Which one of the following statements is not true?
A. A firm that chooses to cheat on a price-fixing scheme should consider the short-term gain in profits from cheating versus the long-term loss in profits from being punished. B. The duopoly-pricing strategy leads to negative economic profits. C. Cartels may break down because of the incentive to cheat. D. Price leadership arrangements are an implicit price-fixing scheme.
The costs that a firm incurs when it changes its production level are ________ costs.
A. depreciation B. accelerated C. adjustment D. sunk
A corporation is liable to pay to bondholders the
A. current interest rate in the bond market. B. current yield on the particular bond. C. coupon rate on the bond. D. yield on the bond at maturity.