Everything Else Equal, Including Firm Size, Rand Sales, Type of Product

question 33

Multiple Choice

Everything else equal, including firm size, rand sales, type of product sold, and so forth, the primary difference between the proprietorship and partnership business forms is that

• A) a partnership has more owners than a proprietorship.
• B) the combined personal liability associated with a partnership is significantly less than the combined personal liability associated with a proprietorship.
• C) a partnership generally is easier to form than a proprietorship.
• D) the annual growth rate of a proprietorship is limited by law, whereas the growth rate of a partnership is always potentially unlimited.
• E) there are many more businesses that are formed as partnerships than proprietorships.

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Definitions:

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs, and how these choices interact in markets.

Retail Value

the price at which a product is sold to the end consumer in a retail market.

Barbie Doll

A popular fashion doll brand created by the American toy company Mattel, Inc., known for its diverse range of dolls and accessories.

Opportunity Cost

Abstaining from possible rewards offered by other selections upon choosing one.