Explanation

(a) Limited liability is a business ownership structure that protects shareholders' personal assets from losses and debts. The liability is limited to the amount invested in the company. Owners and partners are not accountable for the firm's losses and debts.

(b) - For a private company, the minimum membership is 2 while the maximum is 50 and for a public, the minimum is 7 while the maximum has no limits.

- In a private joint stock, the number of directors is at least 2 while for a public, the number of directors is at least 3.

- There is no need for directors to file anything i.e no restriction on the appointment of directors in a private company while in a public joint company, directors must file a consent to act as directors or sign an MOA or enter for contract for qualification shares.

- In a private joint stock company, the transfer of shares is restricted while in a public joint stock company, there is no restriction of shares.

(c) -Personal capital: The sole proprietorship can invest his own savings into his business for expansion. This prevents him from the burden of interest payment and allows him to retain full control over the business.

- Retained profit: A profitable business generated a positive net income every year. Instead of drawing out large sums of money, a sole trader may opt to retain the earnings for business expansion

- Sale of assets: When a sole trader is short of personal capital and retained earnings and there's a need to further investment in the business, he may decide to sell some of his assets.

Correct Answer: B. subsistence economy

Correct Answer: D. payments made on any factors of production that is temporaly fixed in supply

Correct Answer: C. Monopolistic firm

Explanation

Monopolistic firm is characterizes by an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors.

Correct Answer: D. consumers

Explanation

This is because, according to the concept of equilibrium, if supply increases while demand remains constant, there will be an excess of supply over demand. This will bring about a decrease in the equilibrium price of the commodity and an increase in the equilibrium quantity. This gave rise to the fifth law of demand and supply which states that: “an increase in the supply of a commodity will cause the equilibrium price to fall and the quantity demanded to increase, while a decrease in supply will cause the equilibrium price to rise but the quantity demanded will fall”.

Correct Answer: B. goods reached the final consumer

Correct Answer: D. set a minimum price

Explanation

During seasons where farmers experience a bumper harvest, the government protect the farmers by setting minimum prices that the produce can be exchanged for. This is done in order to avoid a situation where farmers end up exchanging their products for an amount less than the value of the product. As the law of demand would have it, when the supply is higher than the demand, prices will fall. Hence the government set the minimum price at which the produce can be sold.

Correct Answer: B. excess supply

Explanation

price floor is the lowest legal price a commodity can be sold at. Price floors are used by the government to prevent prices from being too low. When a market reaches a price floor, it results in an excess supply because quantity supplied at the price floor exceeds the quantity demanded.

Correct Answer: B. make the best use of scarce resources

Correct Answer: B. price of the commodity

Explanation

Change in demand is also known as shift in demand. A change / shift in demand is caused by taste, income of the consumer, population size, festival, price of other commodities etc.