If the death of an owner causes the firm to dissolve, the firm must have been

The Compagnie Naturelle sells mounted butterflies, using butterfly bait it buys from another firm for $20,000. It pays its workers $35,000, pays $1000 in taxes, and has profits of $3000. What is its value added?

A) $3000 B) $19,000 C) $39,000 D) $59,000

Individual investors can reduce transactions costs by

A) buying common stock rather than bonds. B) combining their purchases through an intermediary. C) common stocks directly, rather than through a mutual fund. D) making loans directly, rather than depositing funds in a bank.