Which Type of Business Organization Is Subject to Initial Legal

question 45

Multiple Choice

Which type of business organization is subject to initial legal requirements?

• A)Sole proprietorship
• B)Limited liability corporation
• C)"C" corporation
• D)None of the above

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Definitions:

Economies of Scale

The financial benefits that companies gain as a result of their size, production volume, or operational scope, where the cost for each unit of production typically falls as the scale expands.

Third-Degree Price Discrimination

A pricing strategy where different prices are charged to different groups of consumers for the same product, based on elasticity of demand.

Monopoly Power

The ability of a single seller to set prices and control the market for a good or service without significant competition.

Peak-Load Pricing

Practice of charging higher prices during peak periods when capacity constraints cause marginal costs to be high.