A Limited Liability Company Is a Form of Business Entity

question 20

True/False

A limited liability company is a form of business entity that combines the legal benefits of the corporate form with the tax benefits of the partnership form.

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Definitions:

Production Possibility Curve

A graphical representation showing the maximum combination of goods and services that can be produced in a given period with available resources.

Opportunity Cost

The expense incurred by not choosing the second-best option when making a decision.

Scarcity

The basic economic issue arises from endless human desires and needs in a context of scarce resources.

Full Production

The level of production where a company or economy is maximizing its use of resources and operating at its highest efficiency.