Three major types of firms that exist in the United States.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.

Economics Concept Introduction

Concept introduction:

Firms: Firms are the business organizations that sell goods and services in order to earn profits.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

If GDP goes up by 1% and the investment component of GDPgoes up by more than 1%, how is the investment share ofGDP changing in absolute terms?▶ In economics, what else is expressed as relative percentagechanges?

CEO Salary and Firm SalesWe can estimate a constant elasticity model relating CEO salary to firm sales. The data set is the same one used in Example 2.3, except we now relate salary to sales. Let sales be annual firm sales, measured in millions of dollars. A constant elasticity model is[2.45]ßßlog (salary) = ß0 + ß0log (sales) + u,where ß1 is the elasticity of salary with respect to sales. This model falls under the simple regression model by defining the dependent variable to be y = log(salary) and the independent variable to be x = log1sales2. Estimating this equation by OLS gives[2.46]log (salary)^=4.822 + 0.257 (sales) n = 209, R2 = 0.211.The coefficient of log(sales) is the estimated elasticity of salary with respect to sales. It implies that a 1% increase in firm sales increases CEO salary by about 0.257%—the usual interpretation of an elasticity.

Solve

Answer 2

Question

Chapter 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.

Economics Concept Introduction

Concept introduction:

Firms: Firms are the business organizations that sell goods and services in order to earn profits.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.

Economics Concept Introduction

Concept introduction:

Firms: Firms are the business organizations that sell goods and services in order to earn profits.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.

Economics Concept Introduction

Concept introduction:

Firms: Firms are the business organizations that sell goods and services in order to earn profits.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.

Economics Concept Introduction

Concept introduction:

Firms: Firms are the business organizations that sell goods and services in order to earn profits.

Answer 6

Chapter 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.

Economics Concept Introduction

Concept introduction:

Firms: Firms are the business organizations that sell goods and services in order to earn profits.

Answer 7

Chapter 6, Problem 6.1.1RQ

To determine

Three major types of firms that exist in the United States.

Answer 8

Expert Solution & Answer

Explanation of Solution

Following are the three major types of the firms that exist in the United States.

Sole proprietorship: This type of firm is basically owned by the single individuals. In general, they are small firms, and in some cases, some firms employ many workers in order to earn high profits. These firms have unlimited liability.

Partnership: This type of firm is owned by two or more individuals. In some cases, these firms are very large. These firms have unlimited liability.

Corporation: This type of firm is a legal form of business. It provides protections to the owners from losing more than the investment, if the business fails. These firms are generally large and organized. These firms have limited liability.