Corporations are able to raise large amounts of financial capital because
A. of limited liability and the treatment of a corporation as an individual entity.
B. of their greater ability to monitor the performance of decision makers.
C. of the tax breaks corporations are given relative to partnerships or proprietorships.
D. of the elimination of the problem of separation of ownership and control.
Answer: A
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a. fixed b. progressive c. regressive d. lump-sum e. proportional
A patent
a. is given only to government owned companies. b. is not a legal impediment to entry. c. is a privilege granted by a state to an inventor over his invention. d. does not give the holder a monopoly during the period it is in effect.
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Refer to the above figure. Profits will be positive
A. when the price equals $1. B. at prices between $1 and $2. C. when the price is above $2. D. when the price equals $2.