In Scenario 2-1 Above,what Would Be the Major Advantage of Establishing

question 13

Multiple Choice

In Scenario 2-1 above,what would be the major advantage of establishing her business as a sole proprietorship?

• A) Independence
• B) Unlimited resources
• C) Pooled talents
• D) Double taxation

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Definitions:

Credit Card

A card issued by a financial institution that allows the cardholder to borrow funds with which to pay for goods and services with the promise to repay these funds, plus any agreed charges.

Over-optimism

The tendency to overestimate the likelihood of positive outcomes in the future.

Consumer

An individual or group that purchases goods or services for personal use.

Perceived Budget Line

A graphical representation of all possible combinations of goods that a consumer can purchase with a given budget, based on their perception of available resources.