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Which of the following statements is true about limited liability?
a. It is any type of investment where the investor’s maximum possible loss is the amount invested.
b. It is full liability for the debt and other obligations of a legal entity.
c. It is an undesirable situation where, if the debts of the business exceed its ability to pay, creditors may reach the personal assets of the business owners.
d. With limited liability, all it takes is one successful personal injury lawsuit, not covered by insurance, to destroy years of hard work by an individual business owner.
e. It is the liability of the owner of a business for all the obligations of the business.
As before pleasing the job, you admit a surprise offer from a competitor. Elucidate how much producer surplus have you earned, if you actually earn $2600 during the month.
What a man needs to help provide a college education for his young daughter. He can afford to invest $800/yr for the next four years, beginning on the girl's fourth birthday.
Compare the competitive price charged and quantity produced under perfect competition and monopoly. Other than identifying the presence of only one producer under monopoly, why do we tend to see this differential.
Find the equal annual payment series that would be equivalent to the following increasing series of payments if the interest rate is 12%.
Why might a company use an indirect cost discrimination scheme versus direct cost discrimination
When the average total cost curve is rising, then the marginal cost curve will be?
Should the Federal Reserve System control the nation's money supply? Defend your position using economic principles.
Describe an example of a real-world industry or market that would be considered by economists to be a natural monopoly. What characteristics of the industry make it a monopoly? What is the impact of the monopoly power on its customers?
Illustrate what would be total incremental investment in accounts receivable and invent theory to support expected increase in sales.
Graphically show the income and substitution effect using indifference curves and budget constraints and discuss why it is important to look at this when the price of a good changes.
Suppose you have 5 stocks. In the past week they have changed in the following way: +5,1,+2,3,2. For each of the value functions from the previous problem, determine what the optimal way to bracket stocks into a portfolio to maximize the value.
HoosierMaker expects to garner revenue of $9.5 million each year and spend $1.3 million a year in costs, over the next 7 years. What is the future worth of this investment if the companies' rate of return is 16% per year?
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