Which of the Following Statements Is True of Sole Proprietors

question 139

Multiple Choice

Which of the following statements is true of sole proprietors?

• A) They mostly pay high salaries and substantial perks to their employees.
• B) Their death or retirement does not legally cease the company from existing.
• C) They often must perform tasks in areas where they lack expertise.
• D) Their earnings are taxed only as income of the company.

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Definitions:

Positive Outcomes

Results or consequences of an action that are beneficial or desirable to stakeholders.

Normative

Pertaining to norms or standards, often referring to analyses or statements that express how things should be rather than how they are.

Positive Economic

Refers to economic theories or policies that lead to beneficial outcomes in terms of growth, employment, and living standards.

Federal Minimum Wage

The lowest hourly wage that an employer can legally pay their employees, as set by the federal government.