A disadvantage of the proprietorship form of business organization is
A) its limited access to capital.
B) its limited liability.
C) that it can issue only one class of stock.
D) that the owner must fight a lot of red tape to form the firm.
Answer: A
You might also like to view...
Which of the following statements is(are) correct
a. As a result of the Great Depression of the 1930s, the quantity theory had come into disrepute, together with the rest of the classical theories. b. According to Friedman, the depression was caused by a fall in aggregate supply and not aggregate demand as believed by the Keynesians. c. As a result of the Great Depression of the 1930s, Friedman believed that the Keynesians had nothing to say about money demand. d. All of the above e. both b and c.
If the MPC is 0.8 and net taxes increase by $100 billion, what is the effect on equilibrium output?
a. There is no effect; equilibrium output is not affected by a change in net taxes. b. Equilibrium output will fall by $80 billion. c. Equilibrium output will fall by $125 billion. d. Equilibrium output will fall by $400 billion. e. Equilibrium output will fall by $500 billion.