Jeremy Is Thinking of Starting Up a Small Business Selling

question 199

Multiple Choice

Jeremy is thinking of starting up a small business selling NASCAR memorabilia.He is considering setting up his business as a sole proprietorship.What is one advantage to Jeremy of setting up his business as a sole proprietorship?

• A)As a sole proprietor, Jeremy would face limited liability.
• B)As a sole proprietor, Jeremy would have the ability to share risk with shareholders.
• C)As a sole proprietor, Jeremy would have both ownership and control over the business.
• D)All of the above would be advantages of setting up his business as a sole proprietorship.

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Definitions:

Factor Analysis Validity

A statistical method used to examine whether a set of survey or test items correlates with underlying constructs, thereby validating the measure's theoretical assumptions.

Criterion-related Validity

The degree to which a test's outcomes correlate with other measures that assess similar constructs, determining how well one measure predicts an outcome based on another measure.

False Negative

A test result that incorrectly indicates the absence of a condition or attribute when it is actually present.

False Positive

An error in data reporting where a test incorrectly indicates the presence of a condition, phenomenon, or attribute when it is not actually present.