Which of the Following Is Not an Advantage of a General

question 59

Multiple Choice

Which of the following is not an advantage of a general partnership?

• A) Businesses losses can be deducted against the partners' other source of income.
• B) The skills and abilities of more than one individual are available to the firm.
• C) The liquidity of each partner's investment is low.
• D) Creating one is relatively easy and inexpensive compared to a c corporation or limited liability company.
• E) It is not subject to double taxation.

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Definitions:

Total Revenue

The total income received by a firm from selling its goods or services, calculated as the quantity sold multiplied by the selling price per unit.

Short-Run Supply Curve

A supply curve that shows the quantity of a product a firm in a purely competitive industry will offer to sell at various prices in the short run; the portion of the firm’s short-run marginal cost curve that lies above its average-variable-cost curve.

Marginal Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit and the quantity of that unit produced.

Supply Curve

A visual chart that illustrates how the price of an item correlates with the amount of the item that sellers are prepared to offer.