Which of the Following Is Considered an Advantage of a Sole

question 217

Multiple Choice

Which of the following is considered an advantage of a sole proprietorship?

• A) easy to raise large sums of capital
• B) limited liability for owner
• C) profit taxed only once
• D) permits effective specialization

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Definitions:

Unit Costs

The total expense incurred to produce, store, and sell one unit of a product or service.

Variable Costing

An accounting approach that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overheads.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.

Inventory Units

The individual items or products that are available for sale, in production, or in stock as part of a company's inventory.