Darcy and Eigen Own and Operate a Small-Business Enterprise That

question 33

Multiple Choice

Darcy and Eigen own and operate a small-business enterprise that does not pay taxes on its profits, but distributes them to Darcy and Eigen who pay taxes on these amounts as their individual income. Darcy and Eigen's personal liability for the firm's debts and obligations is limited. This firm is

• A) a corporation.
• B) a general partnership.
• C) a limited liability company.
• D) a sole proprietorship.

---

Definitions:

Control Group

In an experiment, the group that is not exposed to the treatment and is used as a benchmark to measure how the other tested subjects do.

Independent Variable

The variable in an experiment that is manipulated or changed in order to test its effects on a dependent variable.

Dependent Variable

A variable in an experiment that is expected to change in response to changes in the independent variable.

Quasi-experimental

A research design that attempts to establish cause-and-effect relationships but lacks random assignment of participants to control or experimental groups.