An Advantage of the Proprietorship as a Form of Business

question 295

Multiple Choice

An advantage of the proprietorship as a form of business organization is

• A) its limited liability.
• B) its limited access to capital, thus reducing the possible size of debt.
• C) that it is easy to form.
• D) that it can sell bonds to the public.

Comprehend the definitions and applications of sunk cost and opportunity cost.

Recognize the legal and ethical considerations in pricing, including the Robinson-Patman Act.

Identify the relevance of costs in make-or-buy decisions, further processing decisions, and special pricing strategies.

Grasp the principles of cost analysis for discontinuing segments, replacing assets, and equipment decisions.

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Definitions:

Successful Past Experiences

Previous achievements or positive outcomes that may influence future decisions or actions.