Which of the Following Is True

question 14

Multiple Choice

Which of the following is true?

• A) Under the partnership form of business organization, the owners are not personally liable for the debts of the business.
• B) When employees are paid by the hour, their incentive to shirk is removed.
• C) The limited liability of stockholders under the corporate business structure makes it easier to raise equity capital.
• D) Under the corporate form of business organization, the owners of the firm are personally liable for its debts.

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Definitions:

Child Labor

Refers to the employment of children in any work that deprives them of their childhood, interferes with their ability to attend regular school, and is mentally, physically, socially, or morally harmful.

Regulating Commerce

The act of governing or controlling business practices, trade, and economic transactions through laws and regulations to ensure fairness, competition, and consumer protection.

Central Government

The national government of a federated state, possessing ultimate governmental authority over the entire country.

Government Program

An initiative funded and operated by a government body aimed at achieving a specific social, economic, or political purpose.