Which of the Following Is True of a Business Operating

question 72

Multiple Choice

Which of the following is true of a business operating under sole proprietorship?

• A)It is not considered a separate legal entity.
• B)It cannot be sold when the owner decides to do so.
• C)It requires governmental approval when being transferred.
• D)It has access to unrestricted capital by means of investments.

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Definitions:

Market Interest Rate

The rate of interest prevailing in the market that lenders demand and borrowers pay for funds.

Contractual Interest Rate

The agreed-upon rate of interest that is to be applied to the principal amount in a financial contract.

Discount

A reduction in the price of goods or services, typically offered to encourage purchases.

Face Value

the nominal value or original cost of a security as stated by the issuing authority, not necessarily its market value.