Leigh Wants to Go into the Business of Construction Contracting

question 40

Multiple Choice

Leigh wants to go into the business of construction contracting. Among the reasons that would probably convince Leigh to set up his business as a sole proprietorship would be

• A) its flexibility.
• B) its limited liability.
• C) its perpetual existence.
• D) the ease of transferring the business to others.

---

Definitions:

Simple Interest

Interest computed solely on the initial sum or on the outstanding part of that initial sum.

Discount

A reduction applied to the regular price of goods or services, usually to incentivize purchase.

GICs

Guaranteed Investment Certificates, which are Canadian investment products that offer a guaranteed rate of return over a fixed period.

Simple Interest

Interest calculated only on the principal amount, without compounding.