Conventional Wisdom Reports That 56 Percent of All Small Businesses

question 136

True/False

Conventional wisdom reports that 56 percent of all small businesses fail in their first four years of operation.

Understand the doctrines of ratification and adoption in the context of unauthorized contracts.

Explain the liability of agents for contracts entered into on behalf of non-existent or undisclosed principals.

Evaluate the responsibilities and obligations of principals and agents in hiring and supervising employees to prevent tortious acts.

Discuss the consequences of misrepresentation by agents in making contracts.

---

Definitions:

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit, essentially the cost of producing one additional unit of a good.

Global Warming

The long-term rise in Earth's average surface temperature due to human activities, particularly the emission of greenhouse gases, leading to climate change.

Marginal Benefit

The boost in value or pleasure gained from the consumption of one more unit of a good or service.

Supply and Demand

Fundamental economic principles that describe how prices are determined in a market based on the quantity of a good or service available and desired.