Which of the Following Is True of a Business Operating

question 74

Multiple Choice

Which of the following is true of a business operating as a sole proprietorship?

• A) It is not considered a separate legal entity from the owner.
• B) It cannot be sold when the owner decides to do so.
• C) It requires governmental approval when being transferred.
• D) It has access to unrestricted capital by means of investments.

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Definitions:

Legal Concerns

Issues that arise within the framework of the law, affecting individuals, corporations, and institutions, requiring legal interpretation or action.

Foreign Firms

Companies that are based in one country but operate, trade, or provide services in other countries.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often driven by international trade and investment and aided by information technology.

Changes

The act or process of making something different, often seen in business and personal contexts to reflect growth, development, or innovation.