When an Individual Wishes to Form a Sole Proprietorship,he or She

question 52

Multiple Choice

When an individual wishes to form a sole proprietorship,he or she does so by

• A)filing a petition with the IRS.
• B)purchasing stock in the proprietorship.
• C)filing corporate paperwork with the state.
• D)contributing cash or other assets.

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Definitions:

Outside Supplier

A third-party entity that provides goods or services to a business.

Residual Income

Income that remains after all operating expenses, including cost of capital, are subtracted from revenue, often used in performance measurement.

Investment Center

A business segment whose manager has control over cost, revenue, and investments in operating assets.

Cost Center

A department or segment of a business to which costs can be allocated but does not directly generate revenue.