A Partnership Is a ________

question 98

Multiple Choice

A partnership is a ________.

• A) firm listed on a stock exchange, in which no owner owns a controlling majority of equity
• B) business with two or more owners that is not organized as a corporation
• C) corporation in which the owners have limited liability for the organization's liabilities
• D) private firm in which all owners have equal ownership and limited liability in the event of a bankruptcy

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Definitions:

Automatic Stabilizers

Economic policies and programs that automatically adjust to counteract economic fluctuations without additional government action.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in a country using constant prices.

Balanced Budget Amendment

A proposed amendment to a government's constitution that requires the annual budget to be balanced, so that expenditures do not exceed revenues.

Crowding-out

is an economic theory suggesting that increased government spending leads to a reduction in private sector spending, potentially due to higher interest rates.