If the Consumption of a Good or Service by One

question 121

Multiple Choice

If the consumption of a good or service by one person does not decrease the quantity available for another person, the good or service is

• A) pure.
• B) nonrival.
• C) nonexcludable.
• D) free.

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Definitions:

Sole Proprietorship

A business structure where a single individual owns and runs the business, responsible for all its debts and liabilities.

Debt Financing

Borrowing money that must be repaid over time, with interest.

Collateral

is an asset pledged as security for the repayment of a loan, forfeitable in the case of default.

Corporation

A legal entity recognized by law as a separate "person" that can own assets, incur liabilities, and conduct business, often with the aim of generating profit for its shareholders.