Which of the Following Is True of a Business with Sole

question 126

Multiple Choice

Which of the following is true of a business with sole proprietorship?

• A)It involves several owners.
• B)It is difficult to form and dissolve.
• C)Its owner has maximum management flexibility.
• D)Its owner is exempt from corporate franchise taxes.

---

Definitions:

Cost Information

Data related to the production, acquisition, or maintenance of goods and services, important for managerial decision-making.

Process Costing Systems

An accounting method used for homogeneous products, allocating production costs based on the processes or departments.

Work in Process Inventory

Goods that are in various stages of production but are not yet finished goods, representing partially completed products in the manufacturing process.

Each Process

Pertains to a specific stage in production or manufacturing where materials, labor, or overhead are applied to the product.