Sean Is One of Several General Partners Who Own Pints

question 251

Multiple Choice

Sean is one of several general partners who own Pints and Cans, a small chain of bar and grills located in Illinois and Indiana. Sean is interested in converting the partnership into a master limited partnership. If he convinces other partners to go along with his idea, Pints and Cans will

• A) offer shares of ownership that are traded on a stock exchange much like a corporation.
• B) pay its taxes like a corporation.
• C) begin to operate much like a sole proprietorship.
• D) have to change its name to include the term Ltd. in its title to indicate its owners have limited liability.

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Definitions:

Income-Consumption Curve

Curve tracing the utility-maximizing combinations of two goods as a consumer’s income changes.

Utility-Maximizing

A principle or strategy of consumers making choices to achieve the highest overall level of satisfaction or utility from their available resources.

Inferior Good

An inferior good is a type of good for which demand decreases as the income of the individual increases, in contrast to a normal good.

Rental Housing

Properties available for rent to provide accommodation, usually on a monthly or yearly lease agreement.