When Deciding the Form of Organization of a New Business

question 50

Multiple Choice

When deciding the form of organization of a new business the factors to consider would be all of the following except:

• A)The need to raise large amounts of capital.
• B)The need for continuity in business operations.
• C)The potential profits of the organization.
• D)The personal liabilities of the owners.

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Definitions:

Marginal Utility

The additional contentment a customer derives by consuming one more unit of a product or service.

Demand

The desire and ability of consumers to purchase goods and services at various price levels.

Budget Line

A budget line represents the combination of goods and services that a consumer can purchase given their income and the prices of those goods and services.

Consumer's Equilibrium

A state where an individual allocates their income in a way that maximizes their satisfaction or utility, given their budget.