If an Individual Forms a Sole Proprietorship, Which Nontax Factor

question 47

Multiple Choice

If an individual forms a sole proprietorship, which nontax factor will be of greatest benefit to the sole proprietor?

• A) Liability protection.
• B) Legal flexibility in defining rights and responsibilities of owners.
• C) Facilitates initial public offerings.
• D) Minimal time and cost to organize.

---

Definitions:

Transference

A psychological phenomenon in which individuals redirect emotions or feelings about one person to another, often discussed in psychoanalytic contexts.

Emotional Attachment

The emotional bond that forms between individuals, often influencing feelings of security and affection.

Behavior Therapy

A form of therapy that focuses on changing unwanted or unhealthy behaviors through conditioning techniques.

Psychoanalysis

A therapeutic approach and theory of psychotherapy developed by Sigmund Freud focusing on unconscious processes and unresolved conflicts.