Shontae wants to start a pet hotel and is thinking of setting it up as a partnership with her sister Victoria
What are the advantages and disadvantages she will face by setting up the business as a partnership as opposed to a sole proprietorship or a corporation?
As a partnership, Shontae has the advantages of being able to share the work and risks involved with the business. The disadvantages include unlimited personal liability and the limited ability to raise funds (as are true with a sole proprietorship as well).
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Assume that with existing tax and spending laws, government spending exceeds government tax revenues. To cover the resulting shortfall, the government must:
A) increase consumers' incomes. B) print more money. C) Borrow money in the financial markets. D) lower interest rates.
A firm's _______ contains all combinations of inputs and outputs that are possible given the firms' technology.
A. production possibilities set B. efficient production frontier C. production function D. production possibilities curve
If a price ceiling is set below the equilibrium price in a market
A. surpluses of the commodity will develop. B. rationing will be unnecessary. C. the quantity supplied will exceed the quantity demanded. D. the quantity demanded will exceed the quantity supplied.
The aggregate demand curve will shift to the left if
A. the nation's exports decrease. B. a reduction in the price level pushes down borrowing costs. C. people are more optimistic about their future. D. government expenditures increase.