You and your roommate plan to start a business after college selling pagers. You have personal assets of $20,000 . and she has personal assets of $15,000 . You plan to invest $12,00 . in the business while she plans to invest $8,000 . If the business
goes bankrupt with assets of $20,00 . and liabilities of $50,000 . describe how much each of you stand to lose if you organize (a) as a partnership, and (b) as a corporation.
a . In a partnership, each partner is 100 percent liable for the partnership's debts. You stand to lose
$50,000 . as does your partner
b. In a corporation, shareholders' liabilities are limited to the amount they have invested in the firm. You
stand to lose $12,000 . while your partner stands to lose $8,000.
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In the long run, prices in a monopolistically competitive industry ________ prices without trade.
a. will be higher than b. will be lower than c. will be equal to d. will be the same as
Alicia makes the statement that everytime she eats chocolate, it gives her acne. By ignoring the possibility that there may be another factor that causes Alicia to eat chocolate and which also causes her acne, Alicia is commiting the
a. fallacy of composition b. fallacy that association is causation c. fallacy of segmentation d. mistake of ignoring secondary effects e. mistake of looking beyond the obvious