Which of the Following Is True About Sole Proprietorship in the United

question 91

Multiple Choice

Which of the following is true about sole proprietorship in the United States?

• A)It is the most common form of business organization.
• B)It is responsible for a large portion of total production of goods and services.
• C)It offers the owner the least personal liability of any form of business organization.
• D)There is no opportunity cost to operating the business.
• E)Only one individual can work in such a firm.

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Definitions:

Cash Flows

The net amount of cash being transferred into and out of a business, considered vital for its solvency.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and paying dividends.

Cash Flows

The total amount of money being transferred into and out of a business, affecting its liquidity.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.