Figure 6-1 Shows the Circular Flow Model Where Only Consumption

question 58

Multiple Choice

Figure 6-1 shows the circular flow model where only consumption goods are being produced. Use the figure to answer questions .
Figure 6-1
-Refer to Figure 6-1. Suppose you have been hired by an electronics store as a salesperson. Which of the following flows represents this transaction?

• A) A and B
• B) B and C
• C) A and D
• D) C and D

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Definitions:

Sole Proprietorship

A business structure in which a single individual owns and operates the business, bearing sole responsibility for its debts and liabilities.

UPA

Stands for Uniform Partnership Act, which is a set of laws adopted by various states in the United States that governs partnerships.

Article of Partnership

A written agreement that outlines the terms, conditions, and responsibilities of each partner in a partnership.

Partnership Contract

A legal agreement between two or more parties who wish to manage and operate a business together in order to share its profits.