Which of the Following Statements About the Organization of Firms

question 119

Multiple Choice

Which of the following statements about the organization of firms is true?

• A)Partnerships are the most common form of business organization in Canada.
• B)Owners of a corporation have unlimited liability.
• C)Corporations have limited access to money markets.
• D)Owners of a corporation are not personally liable for the firm's actions,though its directors may be.
• E)Crown corporations are never interested in increasing profits because they have other goals.

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Definitions:

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced (output) with the number of hours worked to produce those goods and services.

Capital Per Worker

The total capital stock of an economy divided by the number of labor workers, influencing productivity.

Labor Productivity

A measure of economic performance that calculates the amount of goods and services produced per hour of labor.

Per-Worker Production Function

The relationship between the amount of capital per worker in the economy and average output per worker.