Which of the Following Is an Advantage of a Sole

question 5

Multiple Choice

Which of the following is an advantage of a sole proprietorship?

• A) The owner has unlimited liability.
• B) The business ceases to exist when the owner dies.
• C) There is a limit to the amount one person can borrow.
• D) Profits are taxed as individual income.
• E) The owner enjoys lack of continuity.

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Definitions:

Nonfinancial Performance Output

Nonfinancial performance output assesses a company's operational efficiency, customer satisfaction, and employee engagement, which are not directly measured in monetary terms.

Input Measures

Quantitative indicators used to assess the amount of resources consumed during the production of goods or services.

Improvement

Enhancements made to an asset or property that increase its value or extend its useful life, rather than repairs which maintain its current condition.

Standard Costs

Predetermined or estimated expenses that are often used to measure and control the cost of producing a product or performing a service.