Partnerships Are Generally More Advantageous Than Sole Proprietorships Because

question 186

Multiple Choice

Partnerships are generally more advantageous than sole proprietorships because

• A) the talents of the partners can be pooled.
• B) some businesses can only be formed as partnerships.
• C) there are many types of partnerships.
• D) partners are jointly and severally liable.
• E) many people can be the president of the company.

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Definitions:

Fixed-Proportion

A production scenario where the input proportions cannot be changed; each unit of output requires the same ratio of inputs.

Production System

The combination of inputs, processes, and outputs that creates goods or services in an organized manner.

Labor Inputs

The quantity of labor used in the production process, often measured in hours worked or number of employees.

Decreasing Returns

A situation in which adding more of one factor of production, while holding others constant, will yield progressively smaller increases in output.