All of the Following Are Advantages of the Sole Proprietorship

question 21

Multiple Choice

All of the following are advantages of the sole proprietorship form of business organization, except:

• A) Tax simplicity
• B) Individual control
• C) No sharing of profits
• D) Limited liability

Understand the principles behind sensitivity and simulation analysis for project evaluation.

Recognize the challenges and strategies related to project financing and rationing.

Identify the different types of costs in business (e.g., sunk, opportunity, incremental).

Understand the role and evaluation of scenario analysis in project management.

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Definitions:

Beta

An indicator of the fluctuation, or inherent risk, of a security or an investment portfolio relative to the overall market.

Shares Outstanding

The total number of a company’s shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Debt-equity Ratio

The indicator showing the proportionality of equity and debt in the financial backing of a company’s assets.

Market Price

The current bid price at which an asset or service can be transacted.