Which Form of Organization Is Free of Initial Legal Requirements

question 101

Multiple Choice

Which form of organization is free of initial legal requirements?

• A) sole proprietorship
• B) general partnership
• C) corporation
• D) both A and B

Distinguish between fixed, variable, and total costs in business operations.

Evaluate decision-making processes in operational and financial contexts.

Understand the concept of average cost and how it is affected by changes in the quantity of units produced and workers hired.

Learn about the relationship between marginal cost (MC), marginal revenue (MR), and their impact on hiring and production decisions.

---

Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from buying an additional unit of a commodity or service.

Total Utility

The complete satisfaction or pleasure a consumer obtains from consuming a given quantity of goods or services.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, reflecting their preferences for certain combinations of goods.

Budget Constraint

Constraints on the assortments of products and services available for purchase by a consumer, determined by their financial resources and market prices.