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

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Answer 1

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 8, Problem 8.1.1RQ

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.

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Problem 3 You are given the following demand for European luxury automobiles: Q=1,000 P-0.5.2/1.6 where P-Price of European luxury cars PA = Price of American luxury cars P, Price of Japanese luxury cars I= Annual income of car buyers Assume that each of the coefficients is statistically significant (i.e., that they passed the t-test). On the basis of the information given, answer the following questions 1. Comment on the degree of substitutability between European and American luxury cars and between European and Japanese luxury cars. Explain some possible reasons for the results in the equation. 2. Comment on the coefficient for the income variable. Is this result what you would expect? Explain. 3. Comment on the coefficient of the European car price variable. Is that what you would expect? Explain.

Problem 2: A manufacturer of computer workstations gathered average monthly sales figures from its 56 branch offices and dealerships across the country and estimated the following demand for its product: Q=+15,000-2.80P+150A+0.3P+0.35Pm+0.2Pc (5,234) (1.29) (175) (0.12) (0.17) (0.13) R²=0.68 SER 786 F=21.25 The variables and their assumed values are P = Price of basic model = 7,000 Q==Quantity A = Advertising expenditures (in thousands) = 52 P = Average price of a personal computer = 4,000 P. Average price of a minicomputer = 15,000 Pe Average price of a leading competitor's workstation = 8,000 1. Compute the elasticities for each variable. On this basis, discuss the relative impact that each variable has on the demand. What implications do these results have for the firm's marketing and pricing policies? 2. Conduct a t-test for the statistical significance of each variable. In each case, state whether a one-tail or two-tail test is required. What difference, if any, does it make to…

Answer 2

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 8, Problem 8.1.1RQ

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

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 8, Problem 8.1.1RQ

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

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 8, Problem 8.1.1RQ

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 8, Problem 8.1.1RQ

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 8, Problem 8.1.1RQ

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 8, Problem 8.1.1RQ

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.