Which of the following advantages of localization of industries may also be a disadvantage?
External economies
Concentration of industries and of people
Development of organized markets
Reduced costs of research
Correct answer is B
No explanation has been provided for this answer.
Which of the following is an external economy derived by a firm?
Low cost opportunities enjoyed by being in a place where other producers concentrate
Technical economics enjoyed by varying the factors of production
Economics of management by putting administrators where the are most efficient
Marketing advantages attained through preferential treatment in the purchase and distribution of produce
Correct answer is A
No explanation has been provided for this answer.
One of the advantages of a partnership over a sole proprietorship is that
It is the most popular form of business organization
The patern can easy withdraw from business
It makes an increase in the capital of the business possible
There is no limit to the number of people who may bring in capital
Correct answer is C
No explanation has been provided for this answer.
Which of the following is NOT true of debentures and debenture holders
Debentures are instruments for rising long-term capital by limited liability companies
Debentures are fixed interest-bearing securities with specified maturity dates
Debenture holders are creditors to the company and therefore do not share in the risk of the company
Debenture holders are entitled to interest payments whether or not profits are made
Preference shareholders recieve their share of profits before debenture holders receive their entitlements
Correct answer is E
No explanation has been provided for this answer.
Which of the following is a characteristic of private limited liability company?
Its shares can be sold to the public
The number of shareholders ranges from fifty to one hundred
All shareholders have equal powers and responsibilities
The number of shareholders ranges from two to fifty
Correct answer is D
No explanation has been provided for this answer.