In which of the following economic activities do we commonly find a proprietor acting as a supervisor, a provider of capital, and a residual claimant?
A)A multinational bank
B)An oil exploration company
C)A small medical store
D)An aircraft manufacturer

Question

Quizplus · Accepted Answer

In a small medical store, the proprietor is likely to act as a supervisor, provider of capital (i.e. funding the business) and a residual claimant (receiving profits or losses). In multinational banks, there could be various shareholders who provide capital and have a claim on residual profits, but there are various layers of management who act as supervisors. Oil exploration companies and aircraft manufacturers often have shareholders who provide capital, and there are multiple layers of management who act as supervisors.

In Which of the Following Economic Activities Do We Commonly