Please answer these as accurately as possible. 1. An advantage of a proprietorsh
ID: 1115169 • Letter: P
Question
Please answer these as accurately as possible.
1. An advantage of a proprietorship is that it is difficult and expensive to set up the owner has complete control over the business the business can issue stocks and bonds the owner has unlimited liability a. b. c, d. Equity financing alternatives include a. 2. b. c. d. issuing bonds issuing stocks borrowing from a bank all of the above 3. Economists normally assume that the goal of a firm is to (i) make profit as large as possible even if it means reducing output. (ii) make profit as large as possible even if it means incurring a higher total cost. (ii) make revenuc as large as possible a. (i) and (ii) b. ) and (ii) c. (ii) and (iii) d. None of the above are correct 4. Which of the following costs would be regarded as an implicit cost? a. b. c. d. the cost of accounting services the opportunity cost of financial capital that has been invested in the business the cost of compliance with government regulation all costs that involve outlays of money by the firm 5. Economic profit is equal to a. total revenue minus the b. total revenue minus the opportunity cost of producing goods and services. c. total revenue minus the accounting cost of producing goods and services d. average revenue minus the average cost of producing the last unit of a good or service. plicit cost of producing goods and services. ex 6. On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers. He is able to produce 4,400 bushels of wheat when he hires 3 workers. Which of the following possibilities is consistent with the property of diminishing marginal product? a. The famer is able to produce 5,600 bushels of wheat when he hires 4 workers. b. The farmer is able to produce 5,800 bushels of wheat when he hires 4 workers. c. The famer is able to produce 6,000 bushels of wheat when he hires 4 workers. d. All of the above are correct 7. When marginal cost is less than average total cost, a. average fixed cost must be rising. b. average total cost must be rising. c. average total cost must be falling. d. marginal cost must be falling.Explanation / Answer
1. The right answer is option b
Explanation: The owner of the sole proprietorship controls the business single handedly and can make all independent decisions. He/ she is not answerable to others while making business-related decisions. This is the main advantage of sole proprietorship. It is ratively easyto set up and it cannot issue stocks or bonds. Unlimited liability is a disadvantage and not an advantage.