Which of the Following Is TRUE

question 409

Multiple Choice

Which of the following is TRUE?

• A) When resources are allocated on the basis of personal characteristics, all people who are willing and able to pay the price get the resource.
• B) When the range of activities to be monitored is large and complex, a command system allocates resources better than a market price.
• C) When a market price allocates resources, some people who are willing and able to pay that price don't get the resource.
• D) Force helps support the legal system on which markets function.

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Definitions:

Partnership Liabilities

Debts or obligations for which partners in a business are mutually responsible.

Partnership Capital

The total resources contributed by partners to a partnership for carrying out its business activities.

Limited Liability Company

A Limited Liability Company (LLC) merges the partnership or sole proprietorship's benefit of pass-through taxation with a corporation's feature of limited liability.

Business Form

The legal structure or organization of a business, such as sole proprietorship, partnership, corporation, or limited liability company (LLC).