Firms Cope with Uncertainty and Incomplete Information by Using

question 71

Multiple Choice

Firms cope with uncertainty and incomplete information by using

• A)sole proprietorship, limited liability, and market coordination.
• B)ownership, incentive pay, and long-term contracts.
• C)team production, economies of scale, and transactions costs.
• D)the market, the firm, and internal organization.
• E)team production, economies of scale, and transaction costs.

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Definitions:

Estimated Taxes

Periodic advance payments of taxes on income that is not subject to withholding, such as earnings from self-employment, interest, dividends, and rental income.

FUTA Tax

Federal Unemployment Tax Act tax, a payroll or employment tax paid by employers to fund state workforce agencies.

Withholding Allowances

A specified number on an employee's W-4 form that reduces the amount of money withheld from their paycheck for taxes.

Semimonthly Payroll

A payroll schedule where employees receive their wages twice a month, often on predetermined dates.