When considering innovations and entrepreneurship, it can be said that Multiple Choice a command economy creates greater incentives for innovation and entrepreneurship than a market economy. innovations in production and business processes lead to an increase in the productivity of labor and capital. if a country's economy is to sustain long-run economic growth, the business environment must restrict entrepreneurial activity. a high level of entrepreneurial activity leads to a low level of innovation. strong legal protection of property rights creates an unfavorable environment for innovation and entrepreneurship.

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business. true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.