Torrie is thinking of starting up a small business selling hand-painted wine glasses. She asks her sister, Lisette, if she'd like to join her in setting up a partnership to start the business
What is one disadvantage in joining the partnership that Lisette should consider?
A) Lisette should realize that, as an owner of the business, she will be personally responsible for the debts of the business.
B) Lisette should realize that her profits in the partnership will always be less than Torrie's profits, since Torrie had the idea to start the business.
C) Lisette should realize that Torrie will have complete control over the business because it was her idea.
D) Lisette should realize that only Torrie will be allowed to own stock in the business as the founding partner.
A
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The quantity of items circulating in the economy that can be used as money is called
A) representative commodity money. B) the money supply. C) commodity money. D) fiat money.
If the price of an item can freely adjust, a market will
A) always move towards equilibrium. B) always have an excess quantity demanded. C) always have an excess quantity supplied. D) never move towards equilibrium because prices are always increasing.