Which One of the Following Statements Concerning a Sole Proprietorship

question 33

Multiple Choice

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

• A)The ability to raise capital is limited by the owner's personal wealth.
• B)The proprietorship pays taxes at the corporate tax rate.
• C)The ownership of the firm is easy to transfer to another individual.
• D)The company must pay income taxes separate from the taxes paid by the owner.
• E)The legal costs to form a sole proprietorship are quite substantial.

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U.S. Government

The federal government of the United States, a republic consisting of three branches: legislative, executive, and judicial, established by the Constitution to govern the country.

Unemployment

The condition of being jobless and actively looking for work, typically measured as a percentage of the labor force.

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The governing body of the Federal Reserve System, responsible for overseeing the United States' central banking system.

Nation's Economy

The overall economic system of a country, encompassing all activities related to production, consumption, and trade of goods and services within the country.