Which One of the Following Statements Is Correct with Respect

question 7

Multiple Choice

Which one of the following statements is correct with respect to sole proprietorships?

• A)The sole proprietor is restricted to service-type businesses.
• B)A sole proprietorship involves limited liability.
• C)The sole proprietor is a society under the Societies Act.
• D)A sole proprietorship involves unlimited liability for the proprietor.
• E)A sole proprietorship is a separate legal entity with one shareholder.

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Definitions:

Financing Cost

The total expenses incurred by a company to borrow funds, including interest payments, fees, and other charges associated with obtaining financing.

Dividend Growth Model

The Dividend Growth Model is a method used to estimate the value of a company's stock by assuming a constant growth in dividends per share.

Cost of Equity

The return a company theoretically pays to its equity investors to compensate them for the risk they took by investing their capital.

Growth Rates

Measures of how much a particular variable, such as population, sales, or GDP, has increased over a specified period of time.