A wedding party hired a sole proprietorship to cater their wedding. In this situation the sole proprietorship is a corporation and the employee who handled the job is a partner. If the sole proprietorship is a corporation and its employee poisons the cake, the shareholders of the corporation are liable for the poisoned cake. True False
Added by Jorge S.
Step 1
A sole proprietorship is a type of business entity that is owned and run by one individual and where there is no legal distinction between the owner and the business. A corporation, on the other hand, is a legal entity that is separate from its owners Show more…
Show all steps
Your feedback will help us improve your experience
Jennifer Stoner and 60 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Angela created a corporation for her business, Angela's Apple Pies & More. She is the sole shareholder of the corporation. In her Statement of Information filed about the corporation, Angela is listed as the President/CEO, Treasurer, and Secretary. Angela is entitled to hold all of these offices because she is the sole shareholder. True False
Lottie A.
QUESTION 3 of 10: True or False: In a sole proprietorship, the owner's personal assets are at risk if the business is not successful. a) True b) False
Pavitr A.
True or false. When a labor market consists of a single monopsony buyer of labor interacting with a single monopoly seller of labor (such as a trade union), the resulting quantity of labor that is hired will always be inefficiently low.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD