Gilbert Is Considering Setting Up a Business

question 122

Multiple Choice

Gilbert is considering setting up a business.He likes some of the advantages of sole proprietorships,but is concerned about some of the disadvantages.He should consider all of the following except

• A) unlimited liability.
• B) difficulty of passing the business on to his heirs.
• C) limited managerial and financial resources.
• D) difficulty of liquidation.
• E) difficulty in getting bank loans.

Apply economic concepts to analyze resource allocation decisions.

Understand the principles of supply and demand in different scenarios.

Calculate profit maximization strategies for various business operations.

Analyze the impact of production costs on business decisions.

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Definitions:

Desirable Effects

Positive outcomes or benefits that are sought after or deemed attractive in a given context.

Primary Goals

The main or most important objectives that an individual or organization aims to achieve.

Open Groups

Groups that are characterized by their openness to new members, allowing for fluid membership and participation.

Closed Groups

Groups that have restricted membership and often require an invitation to join, characterized by a fixed set of members.