A Primary Reason to Open a Business as a Sole

question 20

Multiple Choice

A primary reason to open a business as a sole proprietorship instead of forming a corporation for business ownership is that:

• A) a sole proprietorship provides limited liability for the owner.
• B) it is easier to obtain bank and small business loan funding as a sole proprietorship.
• C) finding managers is easier in a sole proprietorship
• D) a sole proprietorship avoids double taxation of the owner and business.

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Definitions:

Fault Scarp

A step in the landscape caused when fault movement offsets Earth’s surface.

Columnar Joints

Distinctive polygonal shapes formed in volcanic rock due to contraction as it cools, creating pillar-like formations.

Cleavage

The tendency of a mineral to break along flat, even surfaces as determined by the structure of the mineral’s crystal lattice.

Hogback

Any ridge with a sharp summit and one slope inclined approximately parallel to the dip of layers, resembling in outline the back of a hog.