One advantage of a sole proprietorship over a corporation is:
A. greater ability to obtain funds.
B. ease of formation.
C. limited liability.
D. the ability to share work and risks.
Answer: B
You might also like to view...
Elaine’s firm is in a perfectly competitive industry. Why doesn’t Elaine try to sell more of her product by lowering its price below the market price?
a. Her demand curve is not elastic. b. Doing so would be considered unethical price chiseling. c. Her competitors would not allow it. d. She can sell all she wants at the market price.
If the MPC is 0.6, and the government increases its spending by $300b, the overall effect on GDP will be:
A. a decrease of $750b. B. a decrease of $550b. C. an increase of $750b. D. an increase of $250b.
If the Federal Reserve buys $500 of government securities when the required reserve ratio is 50 percent, the maximum potential change in the money supply is a(n)
A. decrease by $1,000. B. increase by $1,000. C. decrease by $500. D. increase by $500.
In the long run, firms in a monopolistically competitive market
A. usually earn positive economic profits. B. always earn monopoly profits. C. earn zero economic profits. D. usually earn economic losses.