Question

Homework Help: Economics

PLEASE CHECK MY ANSWERS!

1. The MAIN advantage to a corporation is..
A. Ease of entry
B. Limited liability for the owners
C. Dividends all go to one person
D. Owners share managerial duty
E. All of the above
(My answer: E)

2. The MAIN advantage to a sole proprietorship is...
A. Ease of entry
B. Financial capital is easy to obtain
C. Owners need little expertise in the day to day business
D. Limited liability for the owner
E. All of the above
(My answer: A)

3. The MAIN disadvantage to a sole proprietorship is...
A. Profits must be shared
B. Difficult and expensive to open
C. Unlimited liability
D. Single taxation
E. All of the above
(My answer: D)

4. A variable cost...
A. Increase as production increase.
B. Is a constant cost of production.
C. Is always changing no matter the circumstance.
D. Is a cost like manager's salaries, rent, etc
E. None of the above
(My answer: C)

5. An example of an explicit cost of production would be
A. The cost of forgone labor earnings for an entrepreneur
B. The cost of flour for a baker
C. The lost opportunity to invest in other capital markets when the money is invested in ones business.
D. None of the above
(My answer: B)

I may have more, but someone please check my answers so far! It would be greatly appreciated! Thank you!!!

Answer 1

1. Nope, it asks for MAIN advantage.
3. Arguable, but yes, however, cost of starting some is great.
4. variable costs increase as volume goes up.

Answer 2

So.. Here's my second try:
1. C
2. A
3. B
4. A
5. B
Are these right?

Answer 3

Of course not. Have you tried reading the text? guessing is silly, and a waste of time.

Answer 4

We don't have a text. It's an online class and we never learned any of this. Thanks, though.