Which Organizational Form Best Enables the Owners of a Firm

question 74

Multiple Choice

Which organizational form best enables the owners of a firm to monitor the professional conduct of each other owners of the firm?

• A) Sole proprietorship
• B) Partnership
• C) Private corporation
• D) Public corporation

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Definitions:

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender.

MB = MC Rule

A principle in economics that states the optimal level of an activity is reached when the marginal benefit (MB) is equal to the marginal cost (MC).

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the total amount loaned, which can influence economic activity and monetary policy.

Land Rent

The price paid for the use of land or real estate, often determined by its location, size, and utility.