In Which Form of Business Organization Is a Agency Problem

question 73

Multiple Choice

In which form of business organization is a agency problem most likely to occur?

• A) Sole proprietorship
• B) Corporation
• C) Partnership
• D) Limited liability company

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Definitions:

Upsloping

A description for a curve or a line on a graph that shows a positive relationship between two variables, indicating that as one variable increases, the other also increases.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Price

is the amount of money expected, required, or given in payment for something, reflecting the value that must be exchanged to obtain a good or service.

Quantity Demanded

The cumulative quantity of a product or service that buyers are ready and capable of buying at a certain price within a given timeframe.