Sole Proprietorships

question 14

Multiple Choice

Sole proprietorships

• A)are expensive to set up.
• B)create unlimited liability for their owners.
• C)are faced with double taxation of profits.
• D)can have multiple owners.
• E)provide limited liability to owners.

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Definitions:

Compound Rate

The rate at which interest is calculated on the initial principal and also on the accumulated interest of previous periods.

Annually

Occurring once every year or relating to a period of one complete year.

Interest

The cost of borrowing money, represented as a percentage of the total amount loaned.