A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:

  • limited partner.

A business formed by two or more individuals who each have unlimited liability for all of the firm’s business debts is called a:

  • general partnership.
A business owned by a solitary individual who has unlimited liability for its debt is called a:
  • sole proprietorship.
Which one of the following is defined as a firm’s short-term assets and its short-term liabilities?
  • working capital
Which one of the following terms is defined as the mixture of a firm’s debt and equity financing?
  • capital structure
Which one of the following terms is defined as the management of a firm’s long-term investments?
  • capital budgeting
The production function in the above table exhibits decreasing marginal returns to capital over what output range?
  • Between 2,391 and 3,048
The production function in the above table exhibits negative marginal returns to capital over what output range?
  • Between 3,016 and 2,945

The production function for good X in the above table exhibits increasing marginal returns to capital over what output range?

  • Between 0 and 1,524
In the short run, the marginal cost curve crosses the average total cost curve at
  • The minimum point of the average total cost curve

The point where diminishing marginal returns has begun to affect production, is best characterized by the point where the

  • Marginal product curve begins to be negatively sloped
Which of the following conditions is true when a producer minimizes the cost of producing a given level of output?
  • The marginal product per dollar spent on all inputs is equal

Which of the following “costs” could a firm that wants to remain in business avoid if it halted current production?

  • Variable costs
If a firm’s production function is Leontief and the price of capital goes down the
  • Cost minimizing combination of capital and labor does not change