Partnerships Differ from Proprietorships Because Partnerships

question 77

Multiple Choice

Partnerships differ from proprietorships because partnerships

• A) consist of two or more partners sharing the responsibilities of the firm and proprietorships do not.
• B) require a written agreement and proprietorships do not.
• C) require a state charter and proprietorships do not.
• D) are characterized by unlimited liability and proprietorships are not.
• E) generate fewer profits than do proprietorships.

Distinguish between the concepts of internalizing externalities and the role of property rights in this process.

Understand the relationship between marginal social benefit, marginal social cost, and the efficient quantity of pollution or externalities.

Understand the concept of marginal social benefits and costs in the context of pollution from coal mines.

Recognize the efficient quantity of pollution where marginal social benefit equals marginal social cost.