Jeremy Is Thinking of Starting Up a Small Business Selling

question 198

Multiple Choice

Jeremy is thinking of starting up a small business selling NASCAR memorabilia.He is considering setting up his business as a sole proprietorship.What is one disadvantage to Jeremy of setting up his business as a sole proprietorship?

• A)As a sole proprietor, Jeremy would be taxed twice.
• B)As a sole proprietor, Jeremy would not have control of the business.
• C)As a sole proprietor, Jeremy would face unlimited liability.
• D)As a sole proprietor, Jeremy would be subject to significant rules and regulations.

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Definitions:

Interest Rate

The cost of borrowing money or the rate paid on deposits, serving as the price of credit or savings in the financial market.

Interest Rate

The proportion of a total amount of money that is levied for borrowing it, usually stated on a yearly basis.

Investment

The allocation of resources, usually money, in assets with the expectation of earning a future return.

Face Value

The nominal value printed on a financial instrument like a bond or currency note, representing its legal value.