One disadvantage of a sole proprietorship as a form of business organization is that
a. sole proprietorships cannot lower the transaction costs associated with contracting with resource owners
b. sole proprietorships are less efficient than corporations, because they are less specialized in production
c. owners of sole proprietorships can lose all their personal assets if the business is sued or fails
d. owners of sole proprietorships generally find it difficult to negotiate separation agreements with the other partners in the firm
e. owners of sole proprietorships generally have very little control over how they operate their businesses
C
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According to your text, the "market economy" can best be understood as
A) an institution created by British merchants around the time of Smith's Wealth of Nations. B) an extremely complex institution that emerged out of individuals specializing and trading among each other. C) an institution unique to America. D) an institution that could not exist in the absence of regulation.
Discuss the difference between renewable and nonrenewable resources. Given an example of each
What will be an ideal response?