The Corporate Form of Business Organization ______

question 171

Multiple Choice

The corporate form of business organization ______

• A) is chosen by more firms than any other form of organization in the United States.
• B) refers to a structure where owners have limited liability.
• C) generates less than half of the output in the U.S. economy.
• D) combines the limited liability of the partnership with the personal control of the sole proprietorship.
• E) is the least complex form of business organization.

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Definitions:

PPCs (Production Possibility Curves)

Graphical representations that show the maximum possible output combinations of two goods that an economy can achieve when all resources are fully and efficiently utilized.

Specialization

The process of concentrating on and becoming expert in a particular subject or skill, often leading to increased efficiency and productivity.

Gains From Trade

The extra output that trading partners obtain through specialization of production and exchange of goods and services.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than its competitors, leading to more efficient international trade.