If You Are in a Business That Is Faced with Enormous

question 1

Multiple Choice

If you are in a business that is faced with enormous risks of failure, which of the following would have the most risk to you as an individual?

• A)corporation
• B)sole partnership
• C)general partnership
• D)sole proprietorship

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Definitions:

Comparative Advantage

The economic principle that a country or entity should produce goods and services for which it has a lower opportunity cost than its trading partners.

Mutual Gain

A situation or outcome in negotiation or trade where all parties involved benefit or achieve some level of advantage.

Tariffs

Tariffs are taxes imposed by a government on imported or exported goods.

Quotas

Government-imposed trade restrictions that limit the quantity or monetary value of goods that can be imported or exported during a specified time.