Which of the Following Is a Characteristic of a Sole

question 16

Multiple Choice

Which of the following is a characteristic of a sole proprietorship?

• A) Business owned by more than one person
• B) Easy to form
• C) Each stockholder acts as an owner of the company
• D) Can continue indefinitely

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Definitions:

Budget Line

A visual chart showing every potential mix of two products that one can buy with a specific amount of money at constant prices.

Goods

Tangible items that satisfy human wants or needs, and that can be transferred from one person to another.

Income

The income earned, particularly consistently, from employment or investment returns.

Ordinal Utility

A concept in economics that describes how consumers rank different bundles of goods, reflecting preferences in terms of order rather than quantifiable satisfaction.