About Three-Quarters of All Businesses in the United States Are

question 79

Multiple Choice

About three-quarters of all businesses in the United States are sole proprietorships,and they account for 10 percent of total business income.We may conclude that

• A) the average corporation is small,but earns little income.
• B) the average corporation hires many people,but makes little income.
• C) the average sole proprietorship is large,but earns little income.
• D) there are many sole proprietorships,but their average income is small.
• E) there are few sole proprietorships,and their average income is small.

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Definitions:

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Loss Aversion

Oversensitivity to loss, leading to an unwillingness to recognize a loss and move on.

Mental Accounting

The habit of mentally assigning dollars to different accounts so that some dollars are worth more than others.

Overconfidence

The phenomenon where an individual's subjective confidence in their judgments is reliably greater than their objective accuracy.