Which of the Following Is a Major Advantage of a Sole

question 127

Multiple Choice

Which of the following is a major advantage of a sole proprietorship?

• A)Separation of ownership and control
• B)Limited liability for business debt
• C)Transferability of ownership and firm continuity over time
• D)Ease of start-up
• E)Ease of obtaining financing

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Definitions:

Full-Employment Equilibrium

A scenario where all accessible labor resources are utilized in the most economically effective manner.

Aggregate Supply (AS) Curve

A graphical representation in economics that shows the total supply of goods and services that firms in an economy are willing to produce at a given price level in a given period.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, an indicator of inflation or deflation.

Output Produced

The total quantity of goods and services produced by an economic system during a given period.