Which of the Following Is a Characteristic of a Sole

question 16

Multiple Choice

Which of the following is a characteristic of a sole proprietorship?

• A) Business owned by more than one person
• B) Easy to form
• C) Each stockholder acts as an owner of the company
• D) Can continue indefinitely

---

Definitions:

Price Ceiling

A legally established maximum price for a good, or service. Normally set at a price below the equilibrium price.

Legal Price

A price set by law or regulation, typically to prevent prices from being too high or too low in a market.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Commodity X

A placeholder name used to denote a specific, but unspecified, item in economic models and discussions.