Which of the Following Is Correct with Respect to Sole

question 177

Multiple Choice

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

• A) The sole proprietorship is a separate legal entity.
• B) The sole proprietor has unlimited liability.
• C) The sole proprietor has limited liability.
• D) Sole proprietorship exists where two or more people carry on business together with a view towards profits.
• E) A sole proprietorship must be incorporated.

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Definitions:

Elasticity Coefficient

A measure of how much the quantity demanded or supplied of a good changes in response to a change in price.

Price Range

The spectrum of prices at which a particular good or service is sold, varying from the lowest to the highest amounts customers are asked to pay.

Inelastic Demand

A situation where the demand for a product does not significantly change in response to changes in its price.

Business Travel

The act of traveling for the purpose of conducting business-related activities.