If an Individual Forms a Sole Proprietorship, Which Nontax Factor

question 79

Multiple Choice

If an individual forms a sole proprietorship, which nontax factor will be of greatest benefit to the sole proprietor?

• A)Liability protection.
• B)Legal flexibility in defining rights and responsibilities of owners.
• C)Facilitation of initial public offerings.
• D)Minimal time and cost to organize.

---

Definitions:

Question Mark

In the context of business, a Question Mark refers to products in the Boston Consulting Group matrix that have low market share in high-growth markets, indicating uncertainty.

Boston Consulting Group

A global management consulting firm known for its expertise in business strategy, including the development of the growth-share matrix, which helps companies with portfolio management.

Stars

Objects in space consisting of hot plasma emitting light, or in a business context, products or business units with high market share in fast-growing industries.

Dogs

In the context of the BCG Matrix, business units or products that have low market share in a mature, slowly growing industry, suggesting they may generate just enough cash to maintain themselves.