Identify the Correct Statement About Sole Proprietorship

question 14

Multiple Choice

Identify the correct statement about sole proprietorship.

• A) The owner shares responsibility with the agents and employees.
• B) It may be operated under an assumed or trade name.
• C) Employees of the business are not the personal employees of the owner.
• D) The salaries paid to the employees are not deductible in determining taxable income.

---

Definitions:

Gasoline

Gasoline is a volatile, flammable liquid derived from petroleum, primarily used as fuel in internal combustion engines.

Supply Curve

A visual chart that illustrates how the price of an item affects the amount of the item that sellers are prepared to offer.

Inferior Good

A product whose demand decreases as consumers' income levels increase, opposite to normal goods.

Income Rises

An increase in the amount of money received by individuals or households, often measured on an annual basis.