Which One of the Following Statements Concerning a Sole Proprietorship

question 52

Multiple Choice

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

• A) The life of a sole proprietorship is limited.
• B) A sole proprietor can generally raise large sums of capital quite easily.
• C) Transferring ownership of a sole proprietorship is easier than transferring ownership of a corporation.
• D) A sole proprietorship is taxed the same as a C corporation.
• E) A sole proprietorship is the most regulated form of organization.

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Definitions:

Dependent Variable

A variable in an experiment or study whose changes are determined by the presence or variation of one or more independent variables.

Independent Variable

Variables in a study that are presumed to influence or determine the dependent variable, essentially the cause in a cause-and-effect relationship.

Least Squares Estimate

A method of estimating the parameters of a linear regression line by minimizing the sum of the squares of the differences between the observed and predicted values.

Y-intercept

The point where a line crosses the Y-axis of a graph, indicating the value of the dependent variable when the independent variable is zero.