Which of the Following Is Most Likely a Basic Economic

question 14

Multiple Choice

Which of the following is most likely a basic economic activity?

• A) video rental store
• B) grocery store
• C) gas station
• D) steel mill
• E) travel agency

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Definitions:

Proprietorships

businesses owned and operated by a single individual, where the owner is personally responsible for the company's debts and obligations.

Corporations

A business firm owned by shareholders who possess ownership rights to the firm’s profits, but whose liability is limited to the amount of their investment in the firm.

Partnerships

A legal form of business operation between two or more individuals who share management and profits.

Principal-Agent Problem

A dilemma in economics occurring when one party (the agent) is able to make decisions and/or take actions on behalf of, or that impact, another party (the principal).