A firm where owners are usually not managers and not personally liable for the firm's debts is a
A) sole proprietorship.
B) general partnership.
C) corporation.
D) None of above.
C
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The Real GDP of country X doubled in 10 years. It follows that
A) the per-capita Real GDP doubled during this time, too. B) the per-capita Real GDP remained stable during this time. C) the per-capita Real GDP fell during this time. D) disposable income also doubled during this time. E) none of the above
When interest rates fall in a given economy, it causes firms to borrow __________ funds used for purchasing capital goods. The result will be a(n) ___________ in the level of capital employed in the economy. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis), this then causes ____________________ which makes the LRAS curve shift
____________ resulting in ______________________. A) more; increase; the production function to shift upward; rightward; economic growth B) less; decrease; the production function to shift downward; leftward; a shrinking economy C) more; increase; a movement up along a given production function; rightward; economic growth D) more; increase; a movement down along a given production function; leftward; a shrinking economy