In Scenario 2-1 Above,what Would Be the Major Advantage of Establishing

question 13

Multiple Choice

In Scenario 2-1 above,what would be the major advantage of establishing her business as a sole proprietorship?

• A) Independence
• B) Unlimited resources
• C) Pooled talents
• D) Double taxation

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Definitions:

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales.

Capacity

The maximum amount that something can contain or produce.

Labour Costs

The total expenditures for hiring employees, including wages, benefits, taxes, and any other costs associated with employing labor.

Overhead Costs

Indirect expenses related to the operation of a business, such as rent, utilities, and administrative costs.