A Method That Is Technologically Inefficient

question 196

Multiple Choice

A method that is technologically inefficient

• A) might or might not be economically efficient.
• B) can never be economically efficient.
• C) results from failure to calculate the ratio of the cost of labor to the cost of capital.
• D) means that it uses too much labor and too little capital.

---

Definitions:

Separate Taxable Entity

An entity that is recognized as separate from its owners for tax purposes, such as a corporation, and therefore must file its own tax returns.

Ownership Interest

A portion or share in the ownership of assets, such as real estate or a company, affording the holder certain rights like income or control.

General Partners

Individuals or entities that participate in the management of a partnership and have unlimited personal liability for the debts and obligations of the partnership.

Limited Partners

Individuals in a partnership who have limited liability to the extent of their investment in the company and do not participate in day-to-day management.