Question

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.

Answer 1

Answer:

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.