Which One of the Following Statements Concerning a Sole Proprietorship

question 26

Multiple Choice

Which one of the following statements concerning a sole proprietorship is correct?

• A)A sole proprietorship is often structured as a limited liability company.
• B)The owner of a sole proprietorship may be forced to sell his/her personal assets to pay company debts.
• C)The owners of a sole proprietorship share profits as established by the partnership agreement.
• D)The profits of a sole proprietorship are taxed twice.
• E)A sole proprietorship is the least common form of business ownership.

Understand and calculate the expected number of occurrences in a given time frame or sample size.

Understand and calculate the standard deviation of a probability distribution.

Understand and apply the concept of independent events in probability.

Calculate the probability of a specific outcome given a probability distribution.

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Definitions:

Work In Process Inventory

Items currently under production but not yet finished.

Cost Of Goods Manufactured

The total production cost (material, labor, and overhead) of goods completed and transferred out of the work-in-process account during a period.

Internal Reports

Financial and operational reports used internally by a company's management and staff to make decisions; not distributed outside the organization.

Aggregated

Combined or summed up into a whole; used often in the context of data or information that is collected from different sources and presented as a total.