If a CEO Can Type Faster Than Her Secretary, Then

question 406

Multiple Choice

If a CEO can type faster than her secretary, then

• A) the CEO has a comparative advantage in typing.
• B) the CEO has neither a comparative advantage in typing, nor in management.
• C) the CEO should still continue performing CEO duties since the CEO has a comparative advantage in management, and the secretary should continue typing.
• D) the CEO should still continue performing CEO duties as well as typing since he has a comparative advantage in both management, and typing.

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Definitions:

Capital Interest

The share of ownership a partner has in a partnership, often represented as the value of their investment.

Bonus

An additional compensation paid to employees as an incentive or reward beyond their regular salary or wages.

Liquidation

The process of winding up a company's financial affairs by selling off its assets to pay creditors and distribute any remaining assets to the shareholders.

Partnership Liabilities

Debts and obligations for which partners in a business partnership are mutually responsible.