Lee Wants to Go into the Business of Architectural Design

question 54

Multiple Choice

Lee wants to go into the business of architectural design. Among the reasons that might convince Lee to set up his business as a sole proprietorship would be​

• A) ​its greater organizational flexibility.
• B) ​its limited liability.
• C) ​its perpetual existence.
• D) ​the ease of transferring the business to other family members.

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Definitions:

Equilibrium Price

The value at which the supply and demand for a good or service are equal, creating a balanced market scenario.

Equilibrium Quantity

The quantity of goods or services traded in a market at the equilibrium price, where supply equals demand.

Demand for Bottled Water

Refers to the consumer need or desire to purchase bottled water, influenced by factors like health concerns, convenience, and taste preferences.

Substitute Product

A product that can be used in place of another, fulfilling the same needs or desires.