Question

You are conducting research for a small manufacturing firm and have discovered that when the firm is hiring one to four workers, the marginal product of labor is actually increasing. Explain the implications of this observation for the firm's production and labor practices.

Answer 1

The claim that provisions exempting employees from liability in a Joint Liability Company are valid is false. Business structures like limited liability partnerships and corporations protect individual assets, while general partnerships do not offer such protections.

Step-by-step explanation:

In the context of Joint Liability Companies, the statement that any provision in the Memorandum of Association or Articles of the company exempting any person (employee) from liability is valid is false. This is because, in general, company law does not allow for provisions that entirely exempt individuals from liability, particularly in cases of fraud, dishonesty, or breach of duty. If we consider the various business structures, a limited liability partnership provides a limitation on the extent of each partner's liability to the amount of their investment. Conversely, a corporation is seen as a separate legal entity, which offers protection to its individual owners from personal liabilities

General partnerships do not restrict the partners' liabilities, which means each partner can be held accountable for the actions of the others, putting their personal assets at risk. In comparison, a private company can be a sole proprietorship, partnership, or a corporation without publicly issued stock. T