Which of the Following Is NOT an Advantage of a Sole

question 11

Multiple Choice

Which of the following is NOT an advantage of a sole proprietorship?

• A)Minimum legal requirements to start the business
• B)Firm exists until dissolved by the owner
• C)Limited liability
• D)None of the above

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Definitions:

Resource Prices

The costs associated with procuring the natural, human, and capital resources needed for producing goods and services.

Natural Rate

The unemployment rate or level of activity achieved in an economy when it is at full employment, without accelerating inflation.

Unemployment

The situation in which individuals who are capable of working are actively seeking work but are unable to find employment.

Cyclical

Pertaining to fluctuations in economic activity occurring due to the natural business cycle, including expansions, peaks, recessions, and troughs.