Which of the Following Is True of Sole Proprietorships in the United

question 178

Multiple Choice

Which of the following is true of sole proprietorships in the United States?

• A) They are the most important form of business organization in terms of their numbers.
• B) They are responsible for a large portion of the total production of goods and services in the U.S. economy.
• C) They offer the owners less personal liability than the other forms of business organization.
• D) There are no opportunity costs involved in operating such firms.
• E) Such firms employ only one individual.

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Definitions:

Reorder Point System

An inventory control method that determines the lowest level of inventory before a reorder must be placed to avoid stockouts.

Lead Time

The amount of time between the initiation of a process and its completion, often referring to the delivery time of materials or the production cycle.

Standard Deviation

A statistical measure that quantifies the dispersion or variability of a set of data points from their mean, used to gauge the amount of variation.

Service Level

A measure of the quality of a service provided, often defined as the percentage of customer demand that is met through immediate stock availability.