Which of the Following Is True Concerning a Sole Proprietorship

question 110

Multiple Choice

Which of the following is true concerning a sole proprietorship?

• A)It is a separate legal entity.
• B)It may have more than one class of stock outstanding.
• C)It is owned by one or more persons.
• D)The separate entity concept applies.

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Definitions:

Economic Conditions

The state of an economy at a given time, encompassing factors such as inflation, unemployment rates, and GDP growth.

Decreasing-Cost Industry

An industry where average costs of production decrease as the industry grows and output increases, due to factors like technology improvements or economies of scale.

Entry

The act of entering or joining a particular market or area of business, often considered in terms of barriers that might exist to hinder new competitors.

Input Prices

Input prices refer to the costs associated with the purchase of the raw materials, labor, and other inputs required for the production of goods or services.