The problem with the separation of ownership from control is that
A) the owner in a proprietorship may not always act in the profit-maximizing fashion because he or she may not have the experience or expertise that professional managers have.
B) the managing partner of a firm may not always behave in the way that other managers would if they were the managing partners.
C) the managers of the firm can make decisions that reduce the wealth of the owners while not reducing their own wealth.
D) the owners of firms may not always know the best way to run a firm, yet they are the ones who elect the managers of the firm.
Answer: C
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The above figures show the market for hamburger meat. Which figure(s) shows the effect of a decrease in the price of a hamburger complement such as hamburger buns?
A) Figure A B) Figure B C) Figure D D) Figures A and B
For the CPI. the value of the index in the base year
A) always equals 100. B) depends upon price and quantity that are constantly changing. C) is always greater than 100. D) depends upon what prices did the year before.