Blake, Madison and Sean Started Selling Computer Software on College

question 93

Multiple Choice

Blake, Madison and Sean started selling computer software on college campuses under the name Student Software Company. Each person contributed $1,500toward start-up costs and agreed on dividing costs and profits equally. The legal structure for the company can best be described as:

• A) a proprietorship.
• B) a partnership.
• C) a trade alliance.
• D) a corporation.
• E) none of these.

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Definitions:

Consumer Demand

The desire of individuals or households to purchase goods and services at certain prices.

Investment Goods

Goods that are purchased not for immediate consumption but for producing other goods or services in the future.

Classical Economists

Economists from the late 18th and 19th centuries who believed in the principles of free markets, limited government, and self-regulating behavior of the economy.

Monetarists

Economists advocating that transformations in the money supply drive significant impacts on the national output in the immediate term and on the pricing scale over the long term.