Which of the following statements is correct? A. Economists use the terms firm, company, and business interchangeably. B. A business is always larger than a firm. C. A company is owned by one person, while a firm is owned by more than one person. D. A business has multiple locations, while a company has only a single location.

Question

Business

Selina Williams

14 February, 11:14

Which of the following statements is correct? A. Economists use the terms firm, company, and business interchangeably. B. A business is always larger than a firm. C. A company is owned by one person, while a firm is owned by more than one person. D. A business has multiple locations, while a company has only a single location.

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Answers (1)

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Jayden Dougherty · Answer 1

The answer is: A) Economists use the terms firm, company, and business interchangeably.

Explanation:

Though they aren't exactly the same, they are quite similar, so economists use them as synonyms.

A firm is a company that sells products or services for a profit.

A company is a legal entity (separate from the owner) that operates a business. It can be a sole proprietorship, a partnership, or a corporation.

A business is an organization that trades products or services for money.