Which of the Following Entities Can Be Formed Without a Formal

question 1

Multiple Choice

Which of the following entities can be formed without a formal agreement?

• A) Corporation
• B) Limited partnership
• C) General partnership
• D) Limited liability company

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Definitions:

Crowding-out

A situation where increased public sector spending leads to a reduction in private sector spending.

Accelerator Effect

Refers to the phenomenon where an increase in national income results in a proportionally larger increase in investment spending due to expected higher demand for products.

Aggregate Demand

The sum of all demands for products and services in an economy, set at a particular price level and time period.

Aggregate Demand

Unified demand for all forms of goods and services in an economic landscape at a determined general price level throughout a certain time period.