Assume you and your best friend set up a partnership and your lawyer tells you that as the owners, you could each stand to lose your personal wealth if the business goes bankrupt. This means a partnership
A) faces limited liability.
B) faces unlimited liability.
C) has little chance of succeeding.
D) is not a good type of business to set up.
Answer: B
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Even if the City Council fixed high minimum taxi fares and gave licenses to operate to only a few cab owners, license holders would not earn large profits from operating taxis in the city because
A) people would drive their own cars. B) people would substitute buses for taxis. C) taxis are not a necessity of life. D) the cost of owning a license would eat up the potential profits from operating a taxi. E) the demand would fall as taxi fares rose.
If a country is producing efficiently and is on the production possibilities frontier, the only way to produce more of one good is with an advance in technology
Indicate whether the statement is true or false