Which of the Following Is True of a Sole Proprietorship

question 84

Multiple Choice

Which of the following is true of a sole proprietorship?

• A)A business operated under sole proprietorship cannot be transferred.
• B)Large businesses cannot be operated under sole proprietorship.
• C)A business operated under sole proprietorship must be owned by one or more people of the same family.
• D)Creditors can recover claims against the business from the sole proprietor's personal assets.

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Definitions:

Price Variance

The difference between the actual cost of a good or service and its standard or expected cost.

Product Costs

The total costs incurred to create a product, which include direct materials, direct labor, and manufacturing overhead.

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions relating to a business.

Management Accounting

A branch of accounting that focuses on the preparation and analysis of financial information for internal decision-makers within an organization.