Nick Wants to Start His Own Business

question 1

Multiple Choice

Nick wants to start his own business.Nick should consider a sole proprietorship if he:

• A)Expects rapid growth and want 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:

Insurance Premiums

Payments given to an insurer for the purpose of securing protection against monetary losses from certain risks.

Variable Cost

Expenditures that adjust based on the volume of output or services provided by a business.

Hourly Wages

The amount of money paid to an employee for each hour of work performed.

Total Costs

The aggregate amount of spending involved in generating goods or services, factoring in both stable and changeable costs.