Oliver Wants to Start His Own Business

question 307

Multiple Choice

Oliver wants to start his own business. He should consider a sole proprietorship if he

• A) expects rapid growth and wants to be able to raise a large sum of money.
• B) wants to make it easy to attract qualified employees.
• C) wants to be his own boss and can accept unlimited liability.
• D) wants to minimize the financial risk he must accept as the owner of a business.

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Definitions:

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.

Absolute Advantage

A condition in which a country, individual, or company can produce a good or service at a lower cost per unit than other competitors.