A disadvantage of the partnership form of business organization is
A) its limited access to capital.
B) its limited liability.
C) that it can issue only one class of stock.
D) that the owners must fight a lot of red tape to form the firm.
Answer: A
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Concerning an investment project which of the following is TRUE?
A) A risk-neutral individual is more likely to invest than a risk-averse individual. B) A risk-neutral individual is more likely to invest than a risk-loving individual. C) A risk-neutral individual is less likely to invest than a risk-averse individual. D) Not enough information is given.
Decision makers in oligopolistic firms must devise a strategy. One that yields the highest benefit, regardless of what the other players do is a
A) pricing strategy. B) coherent strategy. C) dominant strategy. D) revenue strategy.
The fundamental rule of profit maximization is for the firm to produce where
a. MR = MC b. ATC is minimized c. quantity of output is maximized d. it is most efficient e. total revenue is maximized
A characteristic of a market economy is:
a. central economic planning by the government b. use of traditional farming methods c. consumer goods often not available d. little government interference in the economy