Which of the Following Is True of Creating a Sole

question 76

Multiple Choice

Which of the following is true of creating a sole proprietorship?

• A)No state government approval is required.
• B)A sole proprietorship is subject to double-taxation.
• C)No licenses are required to do business within a city or state.
• D)Special permission must be obtained to receive sole proprietorship status.

Understand the characteristics and functions of secondary markets, and differentiate them from primary markets.

Learn about the bid-ask spread and its components, including the factors that influence its size.

Comprehend the concept and strategic use of maintenance margins and margin calls in leveraged trading.

Understand the levels-of-processing principle and its impact on memory retention.

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Definitions:

Riskier Conditions

Situations or environments that pose a higher likelihood of danger, harm, or loss, often requiring additional precautions or measures to ensure safety.

Higher Wages

Refers to an increase in the rate of payment for work done, often seen as a goal for labor negotiations or as a reflection of increased living costs.

High Risk Stocks

Equity investments that have a high potential for loss but also offer the possibility of significant returns.

High Returns

Investments or financial assets that yield a significantly higher than average rate of return or profit.