Carl Starts Up, and Assumes the Financial Risk Of, DataWorks

question 48

Multiple Choice

Carl starts up, and assumes the financial risk of, DataWorks, a new marketing enterprise. As a sole proprietorship, the enterprise must meet legal requirements relating to

• A)none of the choices.
• B)licensing and registration.
• C)intellectual property laws.
• D)all of the choices.

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Definitions:

Output

Output refers to the quantity of goods or services produced by a firm, industry, or economy within a certain period.

Increasing Returns

An economic principle where a proportionate increase in inputs leads to a greater proportionate increase in outputs, typically seen in production processes.

Constant Returns

A situation in production where increasing the inputs by a certain proportion results in an increase in output by the same proportion.

Input Prices

The costs associated with the purchase of the materials, labor, and other inputs required for the production of goods or services.