Answer the following questions true (T) or false (F)

1. When a business is set up as a partnership, the owners of the business face unlimited liability.

2. The only type of business that faces unlimited liability is a sole proprietorship.

3. In the United States, partnership profits are taxed at the business level and then are taxed again as personal income in the form of dividend payments.

1. TRUE
2. FALSE
3. FALSE

Economics

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Specialization of labor typically leads to higher levels of productive inefficiency in an economy

a. True b. False

Economics

If a bank does not loan out all of its excess reserves, the amount of money the banking system can create is greater than if all of the excess reserves were loaned out

Indicate whether the statement is true or false

Economics