When Money Is Used as a Means to Hold Wealth

question 17

Multiple Choice

When money is used as a means to hold wealth, it serves as a:

• A)financial intermediary
• B)double coincidence of wants
• C)store of value
• D)medium of exchange

Understand the basic forms of business organization, including sole proprietorship, partnership, and corporations.

Recognize the role and responsibilities of a managing partner in a law firm.

Identify the tasks and functions of paralegals within different business forms, especially in sole proprietorships.

Distinguish between various forms of law firm organization, such as sole proprietorships, partnerships, and professional corporations.

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Definitions:

Short-Run Supply

The supply of goods that occurs when the sellers are only able to change some, but not all, conditions of production.

Diminishing Marginal Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain constant.

Perfectly Competitive

A perfectly competitive market is one where many buyers and sellers trade identical products so that each has no influence on the market price.

Short Run

A period in which at least one factor of production is fixed, limiting the ability of a firm to adjust to changes in market demand or supply.