Which of the Following Is True of a Business Operating

question 74

Multiple Choice

Which of the following is true of a business operating as a sole proprietorship?

• A) It is not considered a separate legal entity from the owner.
• B) It cannot be sold when the owner decides to do so.
• C) It requires governmental approval when being transferred.
• D) It has access to unrestricted capital by means of investments.

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Definitions:

Consumer Surplus

The divergence between the expected payment by consumers for a product or service and the actual payment made.

Producer Surplus

The difference between the amount producers are willing and able to supply goods for versus the amount they actually receive due to market prices.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net gain to society from the production and consumption of goods and services.

Tariff Revenue

Income that a government collects from imposing duties on imported goods.