Which of the Following Statements Describes an Advantage to the Owner

question 22

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

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Definitions:

Blank Endorsement

An endorsement on a financial instrument with only the signature of the endorser, making it payable to whoever holds the document.

Bearer Paper

An instrument that is not made out to a specific person and can be transferred by possession alone, allowing the holder to claim the rights of the paper.

Unqualified Endorsements

An endorsement on a negotiable instrument, such as a check, without any limitations, allowing for the transfer of rights to another party.

Special

Distinguished or different from what is ordinary or usual, often implying superiority or a specific purpose.