Which of the Following Is True About Sole Proprietorship in the United

question 91

Multiple Choice

Which of the following is true about sole proprietorship in the United States?

• A)It is the most common form of business organization.
• B)It is responsible for a large portion of total production of goods and services.
• C)It offers the owner the least personal liability of any form of business organization.
• D)There is no opportunity cost to operating the business.
• E)Only one individual can work in such a firm.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Minimum Lease Payments

The lowest amount that a lessee is expected to pay over the lease term for the lease of property, plant, or equipment.

Leased Asset's Fair Value

The estimated market value of an asset under lease determined at the inception or revaluation point of the lease agreement.

Capital Lease

A lease considered as a purchase of an asset, where the lessee records the leased asset as a capital asset on the balance sheet.