How Do a Sole Proprietorship and a Corporation Differ

question 34

Multiple Choice

How do a sole proprietorship and a corporation differ?

• A)Proprietorships have unlimited liability while corporations have limited liability.
• B)Corporations can issue stocks and bonds, while proprietorships cannot.
• C)Corporations face more taxes than do proprietorships.
• D)All of these are differences between the two types of businesses.

---

Definitions:

Replenishment Cycle

The process of restocking inventory or goods in a business to maintain adequate levels for production or sale.

Manufacturing Cycle

The complete set of processes from the procurement of raw materials to the production of finished goods ready for sale.

Procurement Cycle

The complete process of sourcing, acquiring, and paying for goods and services a company needs for its operations.

Manufacturer

A person or company that makes goods for sale, often in a large-scale operation involving machinery.