Which of the Following Statements Is Correct

question 63

Multiple Choice

Which of the following statements is correct?

• A) Sole proprietorships are easy to start.
• B) If the sole proprietorship gets sued, the owner is not liable.
• C) It is relatively easy for sole proprietorships to raise money.
• D) Profits from the sole proprietorship are subject to double taxation.

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Definitions:

Restrictive Covenant

A clause in a contract that limits certain actions or uses of property to protect business interests or preserve property value.

Public Policy

Principles and actions adopted or proposed by a government to address societal issues and achieve beneficial outcomes.

Minimum Price

The lowest price at which a product or service can be sold, often regulated by law or agreement.

Loss Leader

A pricing strategy where a product is sold at a loss to attract customers, hoping they will make additional purchases at profitable prices.