Which of the Following Is TRUE for a Proprietorship

question 3

Multiple Choice

Which of the following is TRUE for a proprietorship?

• A)The proprietor is not personally liable for the debts of the proprietorship.
• B)A proprietorship has a single owner.
• C)A proprietorship has an indefinite life.
• D)A proprietorship joins two or more individuals as co- owners.

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Definitions:

Bank Loan

Money lent to an individual or business by a bank, typically requiring repayment with interest.

Interest Charged

The cost incurred for borrowing money, typically expressed as an annual percentage rate of the principal.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, reflecting the interest payable on any type of debt.

Interest Income

Interest income is the revenue earned from deposit accounts or investments through the lending of funds or the allocation of capital assets expected to generate interest over time.