Administrative Hierarchies

question 79

Multiple Choice

Administrative hierarchies

• A) are formed to perform nonproduction activities.
• B) are formed due to the rise in capital intensification.
• C) cluster in a relatively few large metropolitan areas.
• D) all of the above
• E) B and C only

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Definitions:

Limited Partner

An investor in a partnership who has limited liability to the extent of their investment and does not partake in day-to-day management.

General Partner

An owner of a partnership who has unlimited liability and is responsible for the management of the partnership.

Liability For Firm Debts

Obligations a company must meet, including all debts and financial responsibilities.

Agency Cost

Costs that arise from conflicts of interest between managers and shareholders within a company.