Question

The firm type that involves sole decision maker power for the owner, unlimited liability for the owner. limited ability to raise money, and ends with the death of an owner is sole proprietorship m partnership. O corporation. all of the above. 0 none of the above. Question 2 4 pts The partnership firm type has a complex decision making process, but also has unlimited liability for the owners and is dissolved with the death of one of the owners. True O False

Answer 1

Correct answers with explanation are given below:

1.

I correct answer: sole proprietorship Reason sole proprietorship involves a single owner. Here sole mean single & proprietor mean owners thus a single owner Thus, in this form of business there is a sole decision maker and it ends with the death of the owner. Also, in case of any liability, the single owner has to pay back and there is no limit on his liability. He can praise money from limited sowices ie. carmot go public Correct answer: True Ilease Partnership from has a complex decision making process because consent of all partners is required so it makes quick decision makina o not possible The liability of partners is unlimited & collective le. if the foim is unable to pay of ay liability then the personal property of partners will be used collectively to pay of liabilities The agreement between the partners comes to an end g due to death or retirement of any partner However, the remaining partners can continue the business but with ause new agreement, 03 correct answer: a legal form of business that provides the N owners shareholders) with limited liability Roaden Corporation is a legal entity (having a seperate legal entity which came into existence with registration). A corporation has shareholders as their oumers to and have

2.

limited liability ie. In case they are liable to pay off in the corporation of any loss or insolvency to the extent of their shave | Toveeet answer: Corporation Reason As explained in Q3, corporation has a seperate legal sentity in the eyes of law, The owners ie shareholders have limited liability. They have double taxation of projets in the sense that projets are taxable once as earned by the corporation and then in the I hands of the owners (of when distributed as dividendy). correct ansever: False Reason: Accounting Progit & Economic Rosit are different concepts. Accounting Rojit i calculated from the books of accounts de Revenue - cost incurred. It doo not take into implicit cost. Only explicit oo. costs are considered However, in economic propt, omplicit cost are also considered. For example, opportunity cost, though not included in hooks of accounts but is taken into account while calculating economic profit Q9) correct answer: are the costs of inputs that vary with putput euch as natural resources Reason Variable optiona costs changes says they do with the level not vary thus of entout. it is wrong

3.

| Dalt. Also variable hence, option explicit or cost can be is correct. implicit. Qo correct answer are the costs of inputs that do not vary nuth custpint such as capital хиолол — Reason Axed cost remain talo constant with change in Youtput, Abtron I says to not vary thus it is not correct. Again, fined cost can be both explicht of emplicit, hence option 2 is correct.