Which One of the Following Statements Concerning a Proprietorship Is

question 162

Multiple Choice

Which one of the following statements concerning a proprietorship is true?

• A) A proprietorship can be a business jointly owned by two family members.
• B) Income from a proprietorship is taxed as a separate entity.
• C) A proprietor is personally responsible for 100% of the firm's liabilities.
• D) A partial transfer of ownership is easier with a proprietorship than with a corporation.
• E) Income from a proprietorship is taxed at a lower rate than other personal income.

---

Definitions:

Contingency Theories

A class of behavioral theory that contends that there is no one best way of organizing a corporation, leading a company, or making decisions, instead it depends on various situational factors.

Theory Y

A management concept that assumes employees are inherently motivated and can exercise self-control and self-direction in achieving objectives.

Subsystems

Subsystems are smaller components of a larger system.

Operations and Service Management

The administration of business practices aimed at ensuring maximum efficiency within a company, specifically in the production of goods and services.