Co-Ownership of a Business Is Essential to Create a Partnership,and

question 17

True/False

Co-ownership of a business is essential to create a partnership,and the most important factor in determining co-ownership is whether the parties share the business's profits and management responsibility.

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Definitions:

Profit-Maximizing

The process by which a firm determines the price and output level that returns the maximum profit.

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a product.

Annual Fixed Cost

Expenses that do not change in proportion to the activity of a business, within the period of a year.

Socially Efficient

An economic condition where resources are allocated in a way that maximizes total social welfare.