Which One of the Following Statements Concerning a Sole Proprietorship

question 51

Multiple Choice

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

• A)The life of a sole proprietorship is potentially unlimited.
• B)A sole proprietor can generally raise large sums of capital quite easily.
• C)Transferring ownership of a sole proprietorship is easier than transferring ownership of a corporation.
• D)A sole proprietorship is taxed the same as a C corporation.
• E)It is easy to create a sole proprietorship.

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Definitions:

Complementary

Something that completes or goes well with something else, enhancing its qualities or effectiveness.

Pay-For-Success

A funding model where payment is contingent on achieving agreed-upon results, often used in social service and public sector projects to align funding with outcomes.

Social Impact Bond

A financial instrument that raises private investment to fund public or social services, with returns to investors contingent on achieving predetermined social outcomes.

Direct Funding

Direct funding refers to the allocation of financial resources directly to a specific project, program, or organization without intermediaries.