Any Debts or Damages Incurred by a Firm Organized as a Sole

question 177

Multiple Choice

Any debts or damages incurred by a firm organized as a sole proprietorship are

• A) the responsibility of the owner.
• B) limited to the amount the owner has invested in the firm.
• C) paid for out of a reserve contingency fund that sole proprietors are required by law to set up.
• D) normally covered by liability insurance.

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Definitions:

Glycogenolysis

The biochemical process of breaking down glycogen into glucose, providing a source of energy as needed by the body.

Parathyroid Hormone

This is a compound released by the parathyroid glands, responsible for managing blood calcium concentrations.

Osteoclasts

Osteoclasts are a type of bone cell that breaks down bone tissue, a process important for bone maintenance, repair, and remodeling.

Epinephrine

Also known as adrenaline, a hormone and neurotransmitter that plays a vital role in the body's fight-or-flight response, increasing heart rate, muscle strength, blood pressure, and sugar metabolism.