Which One of the Following Statements Correctly Applies to a Sole

question 36

Multiple Choice

Which one of the following statements correctly applies to a sole proprietorship?

• A)The business entity has an unlimited life.
• B)The ownership can easily be transferred to another individual.
• C)The owner enjoys limited liability for the firm's debts.
• D)Debt financing is easy to arrange in the firm's name.
• E)Obtaining additional equity is dependent on the owner's personal finances.

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Definitions:

Documented

Something that is supported or proven by the presence of written information or records.

Honeymoon Phase

An initial period of enthusiasm or optimism in a new project, relationship, or situation.

Community

A group of people living in the same place or having a particular characteristic in common, or a feeling of fellowship with others sharing common attitudes, interests, and goals.

Disaster

A sudden event, such as an accident or a natural catastrophe, that causes great damage or loss of life.