Which of the Following Is True

question 144

Multiple Choice

Which of the following is true?

• A) under the partnership form of business organization, the owners are not personally liable for the debts of the business.
• B) when employees also own a business, their incentive to shirk is removed.
• C) the limited liability of stockholders under the corporate business structure makes it easier to raise equity capital.
• D) under the corporate form of business organization, the owners of the firm are personally liable for its debts.

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Definitions:

Quotas

Limits set by governments on the amount of a specific good that can be imported or exported during a given time frame, often used as a way to regulate international trade.

Domestic Industries

Industries that produce goods and services within a country's borders for local consumption.

Prevent Dumping

Strategies or policies implemented to protect a country's domestic industry by limiting the importation of cheaply priced foreign goods.

Foreign Licensing

A business practice where a company allows another business in a different country to produce and sell its products under its brand.