Which of the Following Is True Concerning a Sole Proprietorship

question 110

Multiple Choice

Which of the following is true concerning a sole proprietorship?

• A)It is a separate legal entity.
• B)It may have more than one class of stock outstanding.
• C)It is owned by one or more persons.
• D)The separate entity concept applies.

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Definitions:

Disclosure Statement

A document outlining the critical information and terms of a financial transaction, often mandated by law to protect consumers.

Bulk Purchasing

The acquisition of goods or products in large quantities, often at a discounted price.

Profit Margins

A financial metric that measures the percentage of profit a company makes for each dollar of sales, indicating how effectively a company is managing its expenses relative to its net sales.

Management Structure

The hierarchical arrangement of lines of authority, communications, rights, and duties within an organization.