ABC Company Is Insolvent

question 36

Multiple Choice

ABC company is insolvent. It has two employees to which it owes $7,000 in wages for the last month, owes Canada Revenue Agency $15,000 and the Bank of Winnipeg $20,000. Jill is the sole director. What is her personal liability

• A) $7,000
• B) $15,000
• C) $22,000
• D) $29,000
• E) $49,000

Recognize conditions for long-run equilibrium in constant cost industries.

Analyze the implications of long-run average cost curves on industry structure and firm size.

Understand the economic reasoning behind U-shaped long-run average cost curves.

Interpret how economies of scale affect industry dynamics and cost structures.