Which of the Following Reasons Is the Most Responsible for Corporations

question 52

Multiple Choice

Which of the following reasons is the most responsible for corporations being the most important form of business organization in the United States?

• A)Corporations have limited life.
• B)Stockholders have unlimited liability.
• C)Corporations are subject to less government regulation than other forms of business organizations.
• D)Corporations have the ability to raise larger sums of capital than other forms of business organizations.

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Definitions:

Elasticities of Demand

Measures of how responsive the quantity demanded of a good or service is to a change in its price, income levels, or other factors.

Price Discriminate

The practice of selling the same product or service at different prices to different customers, based on the willingness or ability of the customers to pay.

Marginal Revenue Curve

A graph that shows the change in total revenue resulting from selling one additional unit of a product or service.

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, based on their willingness to pay.