A Proprietorship Is an Unincorporated Business Owned by One Individual

question 14

True/False

A proprietorship is an unincorporated business owned by one individual and the owner benefits from the limited liability for business, which limits his losses to what he has invested in the company.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or the volume of output.

Special Assumption

A specific condition assumed to be true for the purpose of a theoretical framework or model, which may not apply in all real-world situations.

Matching Capacity

involves aligning a company's ability to produce goods or services with the demand for them, aiming to minimize costs and waste while meeting customer needs.

Demand

The desire and ability of consumers to purchase goods or services at a given price over a specific period.