Which of the Following Statements Describes an Advantage to the Owner

question 106

Multiple Choice

Which of the following statements describes an advantage to the owner of a single proprietorship?

• A)The owner's liability is limited to the amount he or she actually invests in the firm.
• B)He or she has limited liability.
• C)The owner can readily maintain full and complete control over every aspect of the firm's operation.
• D)The firm has a legal existence separate from its owner.
• E)Shares of the firm can be traded on any stock exchange.

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Definitions:

Interference

A phenomenon where stored information is difficult to retrieve due to the presence of other similar information or distractions.

Misinformation Effect

A phenomenon where a person's recall of an event becomes less accurate because of post-event information.

Source Amnesia

A type of amnesia in which someone can remember certain information but not the context or source from where that information was acquired.

Retrieval Failure

A phenomenon in which the failure to recall a memory is attributed to the inability to access stored information, often temporary.