The Characteristics Below Apply to at Least One of the Forms

question 18

Essay

The characteristics below apply to at least one of the forms of business organization.
a. Is a separate legal entity?
b. Is allowed to be owned by one person only?
c. Owner or owners are personally liable for debts of the business.
d. Is a taxable entity?
e. Is a business entity?
f. May have a contract specifying the division of profits among the owners?
g. Has an unlimited life.
Use the following format to indicate (with a yes or no) whether or not a characteristic applies to each type of business organization.
$\begin{array}{|l|l|l|l|}\hline & \text { Proprietorship } & \text { Partnership } & \text { Corporation } \\\hline \text { a } & & & \\\hline \text { b } & & & \\\hline \text { c } & & & \\\hline \text { d } & & & \\\hline \text { e } & & & \\\hline \text { f } & & & \\\hline \text { g } & & & \\\hline\end{array}$

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Definitions:

Essential Goods

Products that are necessary for basic living and well-being, often unchanged by changes in income.

Nonessential Goods

Products and services considered as non-critical for survival or basic living standards.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with cheaper ones.

Relative Price

Relative Price is the price of one good or service compared to another, usually reflecting its value in terms of another item rather than its absolute price in currency.