Which of the Following Is an Advantage of a Sole

question 15

Multiple Choice

Which of the following is an advantage of a sole proprietorship?

• A)The ability to pool resources
• B)Limited liability
• C)Double tax exemption of the firm's earnings
• D)Ease of organization
• E)Ease of raising funds

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Definitions:

Poisson Approximation

A statistical technique used to estimate the probability of a given number of events happening in a fixed interval of time or space, assuming these events occur with a known constant mean rate and independently of the time since the last event.

Flat Tire

A condition where a tire loses all or most of its air, causing it to be incapable of functioning properly.

Probability

A mathematical measure of the likelihood of occurrence of a particular event, expressed as a number between 0 and 1.

Major Earthquake

An earthquake of high magnitude that has the potential to cause significant damage and loss of life, usually above a magnitude of 7 on the Richter scale.