Todd and Jorge Have Considered Starting Their Own Business but Are

question 20

Multiple Choice

Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for both Todd and Jorge to avoid this risk would be to organize their firm as a:

• A)general partnership.
• B)limited partnership.
• C)corporation.
• D)sole proprietorship.

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Definitions:

Brain Drain

The phenomenon where individuals with technical skills or knowledge leave their country or area to pursue better opportunities elsewhere.

Efficiency Gains

Improvements that increase the quality, speed, or productivity with which organizations can produce goods or services, often resulting in cost savings.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible.

Net Efficiency

A measure of the effectiveness of an operation, typically calculated as the ratio of useful output to total input, factoring in losses and waste.