Smith's Shoes is a failed business enterprise, with debts of $10 million. Steve Smith has an ownership stake in Smith's shoes
Which of the following statements INCORRECTLY characterizes Steve Smith's legal liability for the debts of Smith's Shoes, depending on the firm's type of business organization? A) If Smith's Shoes is a proprietorship, then Steve Smith is fully liable for the entire $10 million in debt of the failed shoe store.
B) If Steve Smith is a partner in Smith's Shoes, then his legal liability for the debts of Smith Shoes is $10 million divided by the number of partners.
C) If Smith's Shoes is a corporation in which Steve Smith is a stockholder, then Steve Smith does not need to use any of his wealth to pay the debt because the company has limited liability.
D) None of the above statements is incorrect.
B
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A) 25 percent. B) 10 percent. C) 5 percent. D) $200. E) 20 percent.
Which statement is false?
A. During the Great Depression millions of working-class and middle-class people demanded welfare payments. B. Until the 1930s the prevalent theory of poverty was that the poor were lazy. C. The heritage of slavery theory explains most poverty in this country. D. None of these statements are false.
COLA provisions automatically increase wages or benefits to match
A. inflation. B. the cost of living. C. deflation. D. disinflation.
Some economists prefer to use the term business fluctuations rather than business cycles to describe the historical growth record in the United States because:
A. Cycles include a trough phase while fluctuations do not B. Cycles imply regularity while fluctuations do not C. Fluctuations include an expansion phase while cycles do not D. Fluctuations are relatively predictable events