Is Wally Correct That with His Proposal That They Share

question 28

Multiple Choice

Is Wally correct that with his proposal that they share control of the business and split profits equally there could be no personal liability for debts?

• A) Yes, he is correct so long as they do not reach an agreement in writing.
• B) Yes, because they will be considered a partnership regardless of whether any agreement is in writing.
• C) Yes, because so long as they have nothing in writing, their arrangement will be considered a joint venture.
• D) Yes, so long as they sign no contracts by which they agree to be personally liable.
• E) No, he is incorrect.

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Definitions:

Tradable Pollution Permits

A market-based approach to controlling pollution that allows companies to buy and sell permits to emit a certain amount of pollutants.

Pollution Costs

Economic costs associated with the damage caused by releasing pollutants into the environment, impacting health and ecosystems.

Common Property Resources

Natural or man-made resources, such as fisheries or public lands, whose use is shared by a community or society.

Pigouvian Tax

A tax imposed on any market activity that generates negative externalities, intended to correct the market outcome.