CASE Scenario - Bianca and Bijal

question 1

Multiple Choice

CASE
Scenario - Bianca and Bijal
While many others dreamed about owning their own business, Bianca Babson decided to do something about it. Bianca knew that being self-employed required long hours and hard work, but with the help of her husband, Bijal, Bianca was positive that the hours and the work would be rewarded. First, she and Bijal developed a new concept in sunglasses that could be used by athletes better than the sunglasses now on the market. Bianca and Bijal obtained a patent on their invention, and began production and marketing.
-If the business is legally Bianca's, then the business form would be

• A) proprietorship.
• B) partnership.
• C) corporation.
• D) chapter S42.5.
• E) None of these.

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the cost per unit as output increases.

Outputs

The goods or services produced by a business or an economy.

Long-run Average Cost

The per unit cost of production when all inputs, including those typically fixed, can be adjusted.

Short-run Marginal Cost

The cost incurred by producing one additional unit of a product or service in the short term, where some factors of production are fixed.