Thomas Thinks That Organizing as a Partnership Would Be Best

question 57

Multiple Choice

Thomas thinks that organizing as a partnership would be best because

• A)it is the most complicated to form.
• B)they are a small company and do not need to be a corporation.
• C)it gives them limited liability.
• D)it would allow them to rely on their own financial resources and talents.
• E)Thomas actually thinks that sole proprietorship would be best.

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Definitions:

TC

Typically refers to "Total Cost," which is the complete cost of production including both fixed and variable costs.

Average Fixed Costs

The fixed costs of production (such as rent and salaries) divided by the quantity of output produced.

Average Total Costs

The overall expense of creating goods divided by the number of items produced.

Output

The quantity of goods or services produced by a firm, industry, or economy within a specified period.