Bill,a Local Inventor,developed a Diet Pill That He Believes Will

question 139

Multiple Choice

Bill,a local inventor,developed a diet pill that he believes will solve the obesity problem in the United States.Bill wants to create a new company,50% owned by Bill and 50% owned by a major drug company.Although he believes the pills are safe,Bill is concerned about liability if someone becomes sick or dies.The best form of business organization for the new company is

• A) sole proprietorship with Bill as owner and the drug company as creditor.
• B) general partnership with Bill and the drug company as equal partners.
• C) S-type corporation with Bill and the drug company owning equal shares.
• D) limited liability company with Bill and the drug company owning equal shares.

Analyze how differences in values and scientific judgments can lead to conflicting advice from economists.

Comprehend the basic components and movements within coordinate system graphs.

Recognize common errors in reasoning about causation and correlation in economic contexts.

Understand the key artistic movements that emerged in the aftermath of World War I and their characteristics.

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Definitions:

Period Cost

Expenses that are not directly tied to the production process and are charged to the period in which they are incurred.

Future Decisions

Decisions that will be made in the future, often based on forecasts or projections.

Variable Cost Method

A pricing strategy that only accounts for direct materials, direct labor, and variable manufacturing overhead costs, excluding any fixed costs from its calculations.

Total Cost Method

An accounting approach that includes all manufacturing or production costs (direct materials, direct labor, and manufacturing overhead) in the cost of finished goods.