ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 2.6P
To determine
The disadvantages that sole proprietors face
Introduction:
Sole Proprietorship: The form of business which is run and operated by an individual is known as the Sole Proprietorship. All the liability in this form of business lies with the proprietor.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
None
Only typed answer
Answer this question for me mate. Appreciate it. :)
Knowledge Booster
Similar questions
- (A) (. : Credit Supply and Demand) Suppose the demand and supply of credit at different interest rates is given below. Interest Rate Demand Supply 2 35 5 4 30 10 25 15 8 20 20 10 15 25 30 35 12 10 14 5 Why does the credit demand curve slope downwards? What is the equilibrium interest rate and credit supply?arrow_forwardWhat are the advantages of forming a business partnership over a sole proprietorship? (multiple choice) a. Partners in business generally get along very well. b. If the business fails, the partners normally share responsibility for the loss rather than assigning it to one person. c. One partner can work on one component of the business, while the other partner can work on another. d. Partnerships are relatively easy to start uparrow_forwardquestions from part II The income of three firms in an economy in 2005. 2006 and 2007 are shown below in million naira (NM) YEARS FIRMS 2005 2006 2007 (Nm) (Nm) (Nm) A 70 50 80 30 40 60 20 30 60 (a) Present the information in a multiple bar chart. (b) In which year is the total income for the three firms highest? (c) Which firm earned the highest income within the three years? (d) If the three firms are the only production units in the economy, Calculate the national income for (i) 2005. (ii) 2006. (ii) 2007.arrow_forward
- Subject: ( Enterprenurship ) Define SMEs. Also write down Financial and marketing problems of SMEs.arrow_forward11-The selling price of a product in Oman is higher than the price in Dubai although both products are having the same nature. Customers are buying the product from Dubai due to the price differences. What will be the effect of the customers buying the products from Dubai? (1) Due to this, appreciation in the value AED (United Arab Emirates Dirham) relative to OMR, (2) Due to this, depreciate in the value AED (United Arab Emirates Dirham) relative to OMR, (3) Product sold in Oman market will decrease and the retail price will go down, (4) Product sold in Oman market will decrease and the retail price will go up, (5) The demand for the product and prices will increase in Dubai a. (2) and (3) only b. (1), (2), (3), (4) and (5) c. (1) and (2) only d. (1), (3) and (5) onlyarrow_forward16.Calculate Net Value Added at Factor Cost from the following data S.No. Contents { (in lakhs) (i) Depreciation (ii) Intermediate Cost 20 90 (ii) Subsidy (iv) Sales (v) Exports (vi) Change in Stock (vii) | Import of Raw Material 140 7 (-) 10 3arrow_forward
- Exercise 5 (Cost of goods manufactured and sold) Compute cost of goods manufactured and cost of goods sold from the following account balances relating to 20X1 (in thousands): Property tax on plant building Marketing, distribution, and customer- service costs Finished goods inventory, January 1, 20X1 Plant utilities P 3,000 37,000 27,000 17,000 Work in process inventory December 31, 20X1 Depreciation of plant building 26,000 9,000arrow_forward2. A miner extracts iron from the earth. A steel mill converts the iron to steel beams for use in construction. A construction company uses the steel beams to make a building. Assume that the total product of these firms represents the only components of the building and that they will have no other uses. Complete the following table: Company Product Total Sales Value Added Acme Mining iron ore $100,000 ? Fuller Mill steel beams $175,000 Crane Construction building $1,100,000 Total Value Added ?arrow_forwardGross national product at factor cost by income methodarrow_forward
- please answer (i)(ii)(iii)arrow_forward7. (Ad Valorem) What is the effect of an ad valorem tax of v (the share of the price that goes to the government) on a competitive firm's profit-maximizing output given the marketprice is unaffected?arrow_forward1. Individual Problems 1-11 The owners of a small manufacturing concern have hired a vice president to run the company with the expectation that he will buy the company after five years. For the first $150,000 of profit, the vice president's compensation is a flat annual salary of $50,000 plus 50% of company profits. Beyond the first $150,000 in profits, the vice president's compensation is the salary he receives at $150,000 profit plus 20% of company profits in excess of $150,000. On the following graph, use the purple points (diamond symbols) to plot the vice president's salary as a function of annual profit, for the profits levels of $0, $50,000, $100,000, $150,000, $200,000, $250,000, and $300,000. MANAGER SALARY (Thousands of dollars) 250 725 200 175 110 125 100 Total VP Salaryarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you