Think about it: If you were starting a business, what type of partnership would you prefer,...
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Think about it: If you were starting a business, what type of partnership would you prefer, general, limited, or limited liability? Explain your rationale. Think about it: Imagine that you are starting a business that involves a risky product. What would be the advantage of incorporating your company? Using the space to the below, answer questions #9-13 from page 254: APPLYING ECONOMIC CONCEPTS 9. What might be the outcome of raising the fees and requiring more paperwork in order to start a corporation? What would happen if fees were lowered and the application process was simplified? 10. Do you think the number of multinationals will continue to increase? Give reasons for your answer. 11. As you have read, sometimes merged companies are not more efficient than they were separately. In some cases, the chief executive officers (CEOs) who arranged the deal make an enormous amount of money from the merger even though the deal itself does not improve profits. What incentives might a board of directors offer to CEOs to make sure they make deals that pay off in profits? CONTINUED ON NEXT PAGE Think about it: If you were starting a business, what type of partnership would you prefer, general, limited, or limited liability? Explain your rationale. Think about it: Imagine that you are starting a business that involves a risky product. What would be the advantage of incorporating your company? Using the space to the below, answer questions #9-13 from page 254: APPLYING ECONOMIC CONCEPTS 9. What might be the outcome of raising the fees and requiring more paperwork in order to start a corporation? What would happen if fees were lowered and the application process was simplified? 10. Do you think the number of multinationals will continue to increase? Give reasons for your answer. 11. As you have read, sometimes merged companies are not more efficient than they were separately. In some cases, the chief executive officers (CEOs) who arranged the deal make an enormous amount of money from the merger even though the deal itself does not improve profits. What incentives might a board of directors offer to CEOs to make sure they make deals that pay off in profits? CONTINUED ON NEXT PAGE
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