In a Sole Proprietorship,the Owner Has Complete Control Over the Business.This

question 94

Multiple Choice

In a sole proprietorship,the owner has complete control over the business.This allows the owner to:

• A)have limited liability in meeting the debts of the business.
• B)have access to multiple sources of funds.
• C)respond quickly to competitive business conditions or to changes in the economy.
• D)match the wages and benefits offered to employees by a large competing corporation.
• E)utilize all profits without paying any taxes.

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Definitions:

Market Rate

The market rate refers to the current price or interest rate of a commodity, security, labor, or currency in the marketplace.

Straight-Line Amortization

A method of reducing the value of an intangible asset over a fixed period of time evenly.

Bonds

Long-term debt securities issued by corporations or governments, promising to pay the bondholder a specified sum of money at future dates.

Issuance

The process of distributing new or existing securities for sale to investors.