Which of the Following Statements Describes an Advantage to the Owner

question 106

Multiple Choice

Which of the following statements describes an advantage to the owner of a single proprietorship?

• A)The owner's liability is limited to the amount he or she actually invests in the firm.
• B)He or she has limited liability.
• C)The owner can readily maintain full and complete control over every aspect of the firm's operation.
• D)The firm has a legal existence separate from its owner.
• E)Shares of the firm can be traded on any stock exchange.

Comprehend the concept and calculation of individual and market demand elasticity.

Explain consumer surplus and how it is affected by changes in price.

Grasp the first law of demand.

Understand the effect of government policy changes on demand elasticity.

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Definitions:

Budget Increase

An upward adjustment in the amount of money allocated for specific purposes, often reflecting growth or expansion in operations or projects.

Behavioural Decision Model

suggests that decision-making processes are influenced by cognitive biases, emotions, and social influences rather than being purely rational or logical.

Risk And Uncertainty

The exposure to the possibility of loss or damage and the lack of predictability in events or outcomes, respectively.

Optimizing Decision

The process of finding the most efficient, effective, or achievable decision under the given constraints, often using rigorous methods of analysis.