If an Individual Forms a Sole Proprietorship, Which Nontax Factor

question 47

Multiple Choice

If an individual forms a sole proprietorship, which nontax factor will be of greatest benefit to the sole proprietor?

• A) Liability protection.
• B) Legal flexibility in defining rights and responsibilities of owners.
• C) Facilitates initial public offerings.
• D) Minimal time and cost to organize.

Use probabilities to make predictions about real-world phenomena.

Understand the concepts of permutations and combinations in the context of probability.

Calculate conditional probabilities in relevant scenarios.

Develop the ability to logically deduce probabilities using complementary events.

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Definitions:

Economy

The method by which goods and services are produced, distributed, and consumed in a specific geographical area.

Specialization

The process of focusing effort and resources on a particular area of expertise or production to increase efficiency and output.

Barter System

An economic system where goods and services are directly exchanged for other goods and services without the use of money.

Monetary Exchange

The process of trading goods and services using money as a medium of exchange rather than direct barter.