Torrie Is Thinking of Starting Up a Small Business Selling

question 183

Multiple Choice

Torrie is thinking of starting up a small business selling hand-painted wine glasses.She is considering setting up her business as a sole proprietorship.What is one advantage to Torrie of setting up her business as a sole proprietorship?

• A)As a sole proprietor,Torrie would face limited liability.
• B)As a sole proprietor,Torrie would have the ability to share risk with shareholders.
• C)As a sole proprietor,Torrie would have both ownership and control over the business.
• D)All of the above would be advantages of setting up her business as a sole proprietorship.

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Definitions:

Production Process

The series of steps and operations involved in the production of goods or services.

Process Innovation

Involves the implementation of a new or significantly improved production or delivery method, enhancing efficiency or quality.

Output

The total amount of goods and services produced by an economy or an individual business over a specific period.

Total Cost

The complete cost of producing a specific quantity of goods or services, including both fixed and variable costs.