Which One of the Following Statements Concerning a Sole Proprietorship

question 48

Multiple Choice

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

• A) A sole proprietorship is designed to protect the personal assets of the owner.
• B) The profits of a sole proprietorship are subject to double taxation.
• C) The owner of a sole proprietorship is personally responsible for all of the company's debts.
• D) There are very few sole proprietorships remaining in the U.S. today.
• E) A sole proprietorship is structured the same as a limited liability company.

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Definitions:

Simultaneously

Occurring at the same time or concurrently.

Credible Threat

A declaration of intended action or punishment that is believable and realistic enough to influence the behavior of others.

Equilibrium

A state in which all forces or influences are balanced, such as in a market when supply equals demand.

Dominant Strategy

In game theory, an approach that remains optimal for a participant, no matter what tactics are adopted by the others.