A Firm with a Single Owner Who Has the Right

question 111

Multiple Choice

A firm with a single owner who has the right to all profits but who also bears unlimited liability for the firm's losses and debts is known as a(n) ______

• A) sole proprietorship.
• B) partnership.
• C) firm.
• D) nonprofit organization.
• E) producer cooperative.

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Definitions:

Duress

Coercion or force exerted upon someone to compel them to act against their will or make a legal agreement under pressure.

Wrongful

Actions or behavior that are illegal, unjust, or not correct according to law or equity.

Unfair

Activities or practices that are unjust, dishonest, or not in accordance with equity or good conscience.

Mistake

An erroneous belief or misunderstanding about something, which can affect the validity of a contract if it's fundamental.