Vaughn Hager Started His One-Man Consulting Business Under the Name

question 43

Multiple Choice

Vaughn Hager started his one-man consulting business under the name Hager Associates. He likes that he does not have to consult anyone else when making decisions. The legal structure for the company can best be described as a(n) :

• A) sole proprietorship.
• B) partnership.
• C) trade alliance.
• D) corporation.
• E) one-man operation.

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Definitions:

Perfect Competition

A market structure characterized by a large number of buyers and sellers, homogenous products, and the free entry and exit of firms, leading to price-taking behavior.

Market Price

The price at which a good or service is bought and sold in a marketplace, determined by the forces of supply and demand.

Perfect Competitors

Firms operating in a market where there are many sellers and buyers, products are homogenous, and there is free entry and exit from the market.

Short Run

A period in economics during which at least one input (like factory size) is fixed and cannot be changed, contrasting with the long run where all inputs can be varied.