Who Invests All of the Funds Needed for a Business

question 119

Multiple Choice

Who invests all of the funds needed for a business but plays no role in its management?

• A) Silent partner
• B) Sole proprietor
• C) General partner
• D) Principal
• E) Director

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Definitions:

Rationing

Allocating a limited supply of a good or resource among people who would like to have more of it. When price performs the rationing function, the good or resource is allocated to those willing to give up the most “other things” in order to get it.

Scarcity

The essential economic dilemma revolves around the vastness of human aspirations contrasted with the limitations of available resources.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.