Which of the Following, If True About the Owners' Plan

question 99

Multiple Choice

Which of the following, if True about the owners' plan for the new business, would weaken the case that it should be registered as an LLC?

• A) They want the company to maintain its current membership.
• B) They do not want to be liable for the company's debts.
• C) They want the company's funding to come from shareholders.
• D) They want to set the management details in advance.
• E) They want the company to be registered both federally and with the state.

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Definitions:

Economic Profit

The difference between the total revenue earned by a business and the total costs, including both explicit and implicit costs.

ATC

Average Total Cost, which is the total cost divided by the quantity of output produced, indicating the per-unit cost of production.

Profit-Maximizing

The strategy or approach that a firm adopts aiming to achieve the highest possible profit from its operations, considering all variables and constraints.

Profit-Maximizing

The process or strategy of setting production levels or prices to achieve the highest possible profit.