The Most Desirable Form of Business Organization in Terms of Ease

question 30

True/False

The most desirable form of business organization in terms of ease of start-up is a corporation.

Recognize the implications of opportunity costs on business decisions and personal finance.

Analyze decision-making processes in "how much" and "either-or" scenarios.

Understand the impact of implicit costs on economic profit.

Recognize the significance of capital in the context of opportunity costs.

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Definitions:

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the financial markets that borrowers must pay to lenders.

Banks and Thrifts

Financial institutions that accept deposits from the public and create credit. Thrifts, such as savings and loan associations, primarily focus on residential mortgage lending.

FDIC

The Federal Deposit Insurance Corporation (FDIC) is a United States government agency created in 1933 to insure deposits in banks and thrift institutions for at least $250,000 per depositor, per insured bank, for each account ownership category.

Deposit Insurance

A guarantee provided typically by a government agency to protect depositor's funds up to a certain amount in the event of a bank failure.