Assume That You Are Starting a Business

question 31

Multiple Choice

Assume that you are starting a business. Further assume that the business is expected to grow very quickly and a great deal of capital will be needed soon. What type of business organization would you choose?

• A) Corporation
• B) General Partnership
• C) Limited liability company
• D) Limited partnership

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Definitions:

Different Activities

Various tasks or actions taken by individuals, organizations, or systems, distinct in nature and purpose.

Hours

The measure of time equivalent to 60 minutes, often used to quantify work or activity duration.

Diminishing Marginal Product

The decrease in the additional output that is generated when one more unit of input is added, holding all other inputs constant.

Perfectly Competitive

A market structure where there are many sellers and buyers, products are homogeneous, and there is free entry and exit, leading to the price being determined by supply and demand.