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!!!
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.
So.. Here's my second try:
1. C
2. A
3. B
4. A
5. B
Are these right?
Of course not. Have you tried reading the text? guessing is silly, and a waste of time.
We don't have a text. It's an online class and we never learned any of this. Thanks, though.
1. The MAIN advantage to a corporation is limited liability for the owners. (Correct)
To get the answer, you need to understand the advantages of a corporation. Limited liability is one of the key advantages of a corporation, as it means the owners (also known as shareholders) are not personally responsible for the company's debts. If the corporation cannot pay its debts, the owners' personal assets are not at risk.
2. The MAIN advantage to a sole proprietorship is ease of entry. (Correct)
To get the answer, you need to understand the advantages of a sole proprietorship. Ease of entry refers to the fact that starting a sole proprietorship typically requires less paperwork and legal formalities compared to other business entities. It is relatively easy for an individual to start and operate a sole proprietorship on their own.
3. The MAIN disadvantage to a sole proprietorship is unlimited liability. (Incorrect)
To get the answer, you need to understand the disadvantages of a sole proprietorship. Unlimited liability means that the owner is personally responsible for all the debts and liabilities of the business. If the business cannot pay its debts, the owner's personal assets can be at risk.
4. A variable cost increases as production increases. (Correct)
To get the answer, you need to understand the concept of variable costs. Variable costs are expenses that change in direct proportion to the level of production or sales. Examples include costs of raw materials, direct labor, and utilities. As production increases, variable costs also increase.
5. An example of an explicit cost of production would be the cost of flour for a baker. (Correct)
To get the answer, you need to understand the concept of explicit costs. Explicit costs are the actual out-of-pocket expenses incurred by a firm in its production process. These include costs such as raw materials, wages, rent, and utilities. The cost of flour for a baker is an explicit cost as it requires the expenditure of money to purchase the raw material needed for production.
Overall, your answers for questions 1, 2, 4, and 5 are correct. The answer to question 3 is C (unlimited liability), not D (single taxation).