Which One of the Following Statements Is Correct

question 8

Multiple Choice

Which one of the following statements is correct?

• A)A general partnership is legally the same as a corporation.
• B)Both sole proprietorship and partnership income is taxed as individual income.
• C)Partnerships are the most complicated type of business to form.
• D)All business organizations have bylaws.
• E)Only firms organized as sole proprietorships have limited lives.

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Definitions:

Consumer Surplus

The disparity between the cumulative amount consumers are willing to pay for a product or service and the amount they actually pay.

Market Equilibrium

Market equilibrium is a state in a market where the quantity of goods supplied equals the quantity demanded, and there is no incentive for price to change, balancing the forces of supply and demand.

Producer Surplus

The difference between what producers are willing to sell a good for and the price they actually receive.

Price Ceiling

Price Ceiling is a government-imposed limit on how high a price can be charged for a product or service, intended to protect consumers from excessive costs.