Which One of the Following Statements Concerning a Sole Proprietorship

question 2

Multiple Choice

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

• A) The life of the firm is limited to the life span of the owner.
• B) The owner can generally raise large sums of capital quite easily.
• C) The ownership of the firm is easy to transfer to another individual.
• D) The company must pay separate taxes from those paid by the owner.
• E) The legal costs to form a sole proprietorship are quite substantial.

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Definitions:

Marketing Research

The process of gathering, analyzing, and interpreting information about a market, including potential customers and competitors, to inform business decisions.

Small Businesses

Companies with a limited number of employees and revenue, playing a significant role in the economy.

Black Box Influence

The impact of systems or processes whose internal workings are not visible or easily understood by outside observers.

Consumer's Mind

The perceptions, attitudes, memories, and biases that influence how a customer thinks about a product, brand, or experience.