ECON 208 Chapter Notes - Chapter 7: Limited Partnership, Average Cost, Financial Capital

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25 Dec 2018

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ECON 208 Full Course Notes

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Chapter 7 producers in the short run (to print) Single proprietorship has one owner, manager who is personally responsible for all aspects of the business, including its debts: ordinary partnership has two or more joint owners, each of whom is personally. Limited partnership is less common than an ordinary partnership, provides for two types of partners: general partners take part in the running of the business and are liable for b. all the firm"s debts. Shared of a private corporation are not traded on any stock exchange whereas the shares of a public corporation are. Earn revenues from combination of sales and donations. Firms that have locations in more than one country often called multinational enterprises mnes. More common for limited partnerships and large corporations. Financial capital: money firm raises for carrying on its business. Basic types of financial capital used by firms are equity and debt. Equity: funds provided by the owners of the firm.

Related Questions

Match Column A with Column B

1) Partnership	a) a business owned by one person who is personally liable for all losses
2) Proprietorship	b) An artificial being created by a state
3) Limited partnership	c) two or more persons combine their efforts for a single transaction
4) Corporation	d) created when shareholders elect to be treates as partners for tax purposes
5) legal capacity	e) created by an agreement between two or more persons who agree to share profits and losses
6) buy-and-sell agreement	f) provides for compensation to a deceased or withdrawing owner of a business in return for that owners interest.
7) Subchapter S corporation	g) the ability of an organization to sue or to own property
8) joint venture	h) exists when some partners are treated like shareholders for liability purposes
9) limited liability company	i) tax doctine that allows income to be taxed at the owner level, not the organization level
10) "pass through"	j) owners recieve limited liability and tax treatment as if they were a partnership without filing as a corporation.

QUESTION 8

Title VII of the Civil Rights Act prevents discrimination in:

	a.	hiring.
	b.	demotion.
	c.	fringe benefits.
	d.	All of the above are covered by the Civil Rights Act.

3.572 points

QUESTION 9

Which of the following is not a method for forming a partnership?

	a.	by transfer
	b.	by estoppel
	c.	by implication
	d.	by agreement

3.572 points

QUESTION 10

Which of the following job interview questions would be a violation of Title VII?

	a.	Why did you leave your previous employment?
	b.	Do you have reliable child-care arrangements?
	c.	Would you be able to travel two days per week?
	d.	None of the above is a violation.

3.572 points

QUESTION 11

In which of the following forms of doing business does the death of one of the owners cause dissolution?

	a.	nonprofit corporation
	b.	closely-held corporation
	c.	partnership
	d.	S Corporation
	e.	C Corporation

3.572 points

QUESTION 12

The Family and Medical Leave Act:

	a.	applies to companies with 20 or more employees.
	b.	requires applicable companies to provide 12 weeks of unpaid leave for family medical reasons.
	c.	allows an employee to take time off to care for a spouse, child, parent or parent-in-law.
	d.	All of the above are true for the FMLA.

3.572 points

QUESTION 13

Dissolution:

	a.	is the same as termination.
	b.	can result from a limited partner leaving the partnership.
	c.	can result from the death of a partner.
	d.	all of the above

3.572 points

QUESTION 14

A partnership is a:

	a.	tax reporting entity.
	b.	tax reporting and tax paying entity.
	c.	tax paying entity.
	d.	neither a tax reporting nor a tax paying entity.

3.572 points

QUESTION 15

A Subchapter S or S Corporation is:

	a.	a special class of close corporation under the MBCA.
	b.	an IRS tax treatment option for corporations owned by a limited number of shareholders.
	c.	a not-for-profit corporation.
	d.	none of the above

3.572 points

QUESTION 16

Seniority systems:

	a.	were outlawed under Title VII.
	b.	are violations of the Age Discrimination Act.
	c.	can be valid if they are not used to perpetuate past discrimination.
	d.	none of the above

3.572 points

QUESTION 17

A corporation is said to have double taxation. What is meant by this statement?

	a.	The corporation pays double the tax rate of individuals.
	b.	The corporation pays taxes on its income and its shareholders pay taxes on their dividends from the corporation.
	c.	both a and b
	d.	none of the above

turquoisedeer344

Question 1: Answer the following MC questions...

a).

Samuel F.B. Morse patented the (5 points)

A.	telegraph
B.	automobile
C.	audio recorder
D.	radio transmitter

b).

Your friend wants to open a clothing shop. A necessary capital resource is a (5 points)

	A. place to open the shop
	B. knowledgeable fashion manager
	C. license to conduct business
	D.highway billboard for advertising

c).

Jessica is a violinist who believes she can extend her method of learning music to early childhood education. She opens a preschool in her hometown, using her expertise to form an arts-based program. What factor of production is this? (5 points)

	A. Capital
	B. Entrepreneurship
	C. Labor
	D. Land

d).

Your friend hopes to expand her business to multiple locations. It would be best for her to create a (5 points)

	A. limited liability company
	B. sole proprietorship
	C. corporation
	D. partnership

e).

Root and Vine is a gardening collective and local delivery service started by two friends. Their clientele has grown, and they want to expand. The owners like the idea of protecting their personal property, but they want to maintain control of the business. Which type of organization might best suit their growth? (5 points)

	A. Sole proprietorship
	B. Partnership
	C. Limited liability company
	D. Corporation

f).

An oligopoly is a market for a good or service that (5 points)

	A. has few competitive firms
	B. is perfectly competitive
	C. has one buyer
	D. has one seller

g).

The greatest goal in advertising is to convince us (5 points)

	A. "wants" are unnecessary
	B. the firm has the best price
	C. a particular product is a "need"
	D. the product is the same as other firm's products

h).

"Don't be like John, who had no health insurance when he needed emergency surgery. We make health insurance easy and affordable." This advertisement targets your (5 points)

	A. fears
	B. rituals
	C. emotions
	D. social values

i).

Why do monopolies and oligarchies benefit producers over consumers? (5 points)

	A. Companies control price through demand.
	B. Competition is driven by factors other than price.
	C. Demand influences production more when competition is less.
	D. Few producers can generally control prices.

ECON 208 Chapter Notes - Chapter 7: Limited Partnership, Average Cost, Financial Capital

ECON 208 Full Course Notes

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