3 years ago

The advantage of a limited partnership business structure as opposed to a corporate business structure is:

Business

1 answer:

zysi [14]3 years ago

5 0

Answer:

D. limited liability

Explanation:

In a limited liability partnership, each partner's risk of losing personal assets is limited to the share capital he has invested. The limited liability partner is not liable for other partners deeds and losses incurred due to their negligence. His liability is limited to the share capital / equity he has invested in the business.

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When a negative externality exists, the private market produces?

mart [117]

The private market will produce more than the economically efficient output level. Also when there is a negative externality then the cost to producers will be less than the cost to society. Remember that a negative externality is a cost that is suffered by a third party as a result of an economic transaction. Also have in mins that externalities lead to market failure<span> because the price equilibrium </span>does<span> not reflect the true costs and benefits of a product.</span>

4 0

4 years ago

Assume investors expect a 2.0 percent real rate of return over the next year. If inflation is expected to be 0.5 percent, what i

kompoz [17]

Answer:

The correct answer is 2.5%

Explanation:

The rate of inflation is always factored in when calculating the expected market interest for a year.

From the example, the expected real rate of return/interest rate = 2.0 percent

Factoring in an expected 0.5% inflation rate,

= 2.0 + 0.5 = 2.5%

The expected market interest rate for a one-year U.S. Treasury Security = 2.5%