HIS 112
HIS 112
null Edition
ISBN: 9781323880203
Author: Pearson
Publisher: PEARSON C
Question
Chapter 8, Problem 8.1.1RQ
To determine

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

Expert Solution & Answer
Check Mark

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
in 2-3 paragraphs pick one business formation type to describe (sole proprietorships, partnerships, LLPs, LLCs, or corporations). Discuss why having laws in place to protect your selected business formation type is important.
Briefly describe and explain the following investments terms       a) savings c) Mutual funds e) Securities
Name and briefly explain what are the 5 functions of capital in financial institutions
Knowledge Booster
Similar questions
  • use the term Commercial Banks to answer the question below   Explain the purpose of this type of financial institution. Does this type of financial institution have different categories?  (For example, commercial banks can be national, regional, local, or online.)   Depository or Non-Depository? Explain. What are the primary services and products this type of financial institution offers clients/customers? How do they generate revenue/income? Is any of this revenue/income given back to the customers? Is there any type of insurance covering customers in case of failure for this financial institution? Find one (real life) example of this type of financial institution. For this example, include the following information: Name of institution Location (main branch/home office) List of products/services How do they advertise to acquire new customers? Why would a customer choose this particular institution over its competitors? (You will have to explore their website and competitors’…
    talk about the following stock market indices   Dow Jones industrial average Nasdaq Composite CAC 40
    Question 2 of 10. Paul owns 100 shares of stock in an S corporation which he purchased for $57 per share. He gave 10 shares to his daughter, Julie. He also sold 10 shares to his friend, Bill, for $65 a share. What are Paul, Julie, and Bill's respective bases after those transactions? Paul: $4,560Julie: $570Bill: $570 Paul: $4,560Julie: $570Bill: $650 Paul: $5,700Julie: $570Bill: $570 Paul: $5,700Julie: $570Bill: $650
    • SEE MORE QUESTIONS
    Recommended textbooks for you
  • Principles of Economics 2e
    Economics
    ISBN:9781947172364
    Author:Steven A. Greenlaw; David Shapiro
    Publisher:OpenStax
    Economics Today and Tomorrow, Student Edition
    Economics
    ISBN:9780078747663
    Author:McGraw-Hill
    Publisher:Glencoe/McGraw-Hill School Pub Co
    Microeconomics: Private and Public Choice (MindTa...
    Economics
    ISBN:9781305506893
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
  • Economics: Private and Public Choice (MindTap Cou...
    Economics
    ISBN:9781305506725
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
    Microeconomics: Principles & Policy
    Economics
    ISBN:9781337794992
    Author:William J. Baumol, Alan S. Blinder, John L. Solow
    Publisher:Cengage Learning
  • Principles of Economics 2e
    Economics
    ISBN:9781947172364
    Author:Steven A. Greenlaw; David Shapiro
    Publisher:OpenStax
    Economics Today and Tomorrow, Student Edition
    Economics
    ISBN:9780078747663
    Author:McGraw-Hill
    Publisher:Glencoe/McGraw-Hill School Pub Co
    Microeconomics: Private and Public Choice (MindTa...
    Economics
    ISBN:9781305506893
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
    Economics: Private and Public Choice (MindTap Cou...
    Economics
    ISBN:9781305506725
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
    Microeconomics: Principles & Policy
    Economics
    ISBN:9781337794992
    Author:William J. Baumol, Alan S. Blinder, John L. Solow
    Publisher:Cengage Learning