A Sole Proprietorship Is a Form of Business Ownership in Which

question 106

Multiple Choice

A sole proprietorship is a form of business ownership in which:

• A) the company is considered a legal entity that is separate from its owners.
• B) a single owner actively manages the company.
• C) two or more people act as co-owners of the company.
• D) the owners of the business are offered limited liability and flexible tax treatment.

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Definitions:

Ordinary Annuity

An annuity in which the payments are made at the end of each payment interval.

Monthly Payments

Regular payments made every month, often in the context of loans or leases, to repay borrowed money plus interest.

Compounded Annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.

Yearly Contributions

These are amounts of money contributed to any type of savings or investment plan on an annual basis.