Why are there so many more proprietorships than corporations, yet corporations account for so much more of the sales of business firms in the country?
What will be an ideal response?
Proprietorships are easy to form and can be run by an individual, so there can be many of them, especially in businesses in which large size is not necessary for success. However, large-scale business will usually be done by corporations because of the advantages corporations have in raising financial capital.
You might also like to view...
Which of the following is the most likely cause of most recessions according to the new classical model?
a. a change in the money supply. b. an increase in taxation and government spending. c. a fall in expected profits. d. a rise in the price of oil. e. an unanticipated change in the money supply.
Regulated firms can be induced to tell the truth
Indicate whether the statement is true or false
When an individual's wage rises, the income effect tends to:
a. increase hours worked. b. decrease hours worked. c. leave hours worked unchanged. d. an impossible prediction about what will happen to hours worked.
You are the manager of a popular shoe company. You know that the advertising elasticity of demand for your product is 0.15. How much will you have to increase advertising in order to increase demand by 10 percent?
A. 38.6 percent B. 66.7 percent C. 4.3 percent D. 0.02 percent