The Fact That a Corporation Has Limited Liability Means

question 34

Multiple Choice

The fact that a corporation has limited liability means:

• A)corporations can earn a limited amount
• B)some of the owners are limited in earnings
• C)owners' liabilities are limited to the amount invested
• D)the life of the corporation is limited
• E)the corporation's ability to expand is limited

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Definitions:

Additional Utils

The extra satisfaction or utility a consumer receives from consuming one more unit of a good or service.

Optimal Consumption

The mix of goods and services purchased that maximizes the utility or satisfaction of a consumer given their budget constraint.

Marginal Utility

The additional pleasure a consumer experiences from acquiring another unit of a product or service.

Marginal Utility Per Dollar

The additional utility gained from spending one more dollar on a good or service.