A Sole Proprietorship Lasts for How Long If It Continues

question 90

Multiple Choice

A sole proprietorship lasts for how long if it continues to run unabated?

• A)For 100 years
• B)10 years with an option to renew for another 10 years
• C)Until the death of the owner
• D)30 years then the business has to be reformed

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Definitions:

Producer Surplus

The difference in earnings expected by producers for a good or service versus the actual payment received.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, resulting in a balance without excess supply or demand.

Producer Surplus

The variance between the price producers want to sell an item for and the price they end up receiving.

Equilibrium Price

The price point at which the quantity of a good or service supplied equals the quantity demanded.