Assume you set up a sole proprietorship and your lawyer tells you that as the owner you will face unlimited liability. What does that mean?
A) There is no legal responsibility of the business in case a customer sues, as the business is legally untouchable.
B) You are liable for organizing the business.
C) You could stand to lose your personal wealth if the business goes bankrupt.
D) None of these explain what unlimited liability means.
C
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If a union successfully negotiates for higher wages and benefits for airline pilots, what impact would this have on supply and demand in the market for passenger airline travel, assuming no other changes take place in the market?
What will be an ideal response?
Refer to Figure 3-1. A decrease in the price of a substitute good would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
If saving exceeds investment, then the level of GDP will
A. increase. B. remain constant. C. decrease. D. rise above potential GDP.
According to the classical economists
A. a market economy should never experience unemployment. B. a market economy should never experience inflation. C. if unemployment appears, it would soon disappear because of a reduction in interest rates, wages, and prices. D. if inflation appeared it would soon disappear because of a reduction in interest rates, wages, and prices.