Which of the Following Features of a Sole Proprietorship Proves

question 1

Multiple Choice

Which of the following features of a sole proprietorship proves that it is a risky endeavor?

• A) The complications associated with operating in more than one state
• B) Its lack of continuity
• C) The potential for disagreements
• D) Its unlimited liability

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Definitions:

Minimum Efficient Scale

The smallest scale of production where long-term average cost is minimized, helping businesses realize economies of scale.

Plant Sizes

Refers to the scale or capacity of a manufacturing facility or production unit in terms of its output or operations.

ATC

Abbreviation for Air Traffic Control, responsible for regulating and guiding aircrafts to ensure their safe operation in the sky.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's output expands, typically due to inefficiencies and increased complexity.