Which of the Following Statements About a Sole Trader Is

question 2

Multiple Choice

Which of the following statements about a sole trader is NOT true?

• A)All profits made by the business belong to the business and form part of the business' own income.
• B)Because there are no special statutory disclosure requirements,secrecy can be maintained by the sole trader.
• C)There are no special requirements to start operating a business if the sole trader uses their own name.
• D)The sole trader generally has complete control over what the business will and will not do.

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Definitions:

Entry

The act of beginning or entering into a particular sphere or market, often used in the context of firms entering an industry.

MC of Production

The additional cost incurred by producing one more unit of a good or service, often denoted as marginal cost.

Long-Run Industry

An economic concept where all inputs and operations are adjustable, allowing for new firms to enter or exit the market, affecting supply and price levels.

Profit-Maximization

Profit-maximization is the process by which a firm determines the price and output level that returns the greatest profit, focusing on key variables like sales and costs.