Which One of the Following Statements Concerning a Sole Proprietorship

question 234

Multiple Choice

Which one of the following statements concerning a sole proprietorship is correct?

• A) The life of the firm is limited to the life span of the owner.
• B) The owner can generally raise large sums of capital quite easily.
• C) The ownership of the firm is easy to transfer to another individual.
• D) The company must pay separate taxes from those paid by the owner.
• E) The legal costs to form a sole proprietorship are quite substantial.

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Definitions:

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive".

Effect Size

A quantitative measure of the magnitude of the difference between groups or the strength of the relationship between variables in a statistical analysis.

Null Hypothesis

A statement positing that there is no significant difference or effect, often the initial assumption in hypothesis testing.

Type II Error

The error made when a test fails to reject a false null hypothesis, often denoted by beta (β).