In General, All the Forms of Business Organizations Can Be

question 101

Multiple Choice

In general, all the forms of business organizations can be categorized along two dimensions: (1 ) how much responsibility owners have for the organization's liabilities, and (2 )

• A)how the business is taxed.
• B)how the business is financed.
• C)who the target market is.
• D)whether it is a manufacturing or service organization.

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Definitions:

Consumption

Consumption encompasses the acquisition and use of goods and services by households to satisfy their needs and wants.

Induced Consumption

Consumer spending that is influenced by changes in income, differentiating from autonomous consumption which does not vary with income.

Disposable Income

The liquidity households have for spending and saving, after income taxes have been deducted.

Consumption

The act of using goods and services by households that leads to a decrease in their availability.