The Sole Proprietorship Is the Simplest and Least Expensive Form

question 40

True/False

The sole proprietorship is the simplest and least expensive form of ownership to begin.

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Definitions:

Current Liabilities

Short-term financial obligations that a company is required to pay within a year.

Return on Equity

A measure of a company's profitability that calculates how much profit is generated with the money shareholders have invested, reflecting financial performance and efficiency.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.

Owner's Equity

This financial term represents the owner’s interest in the assets of a business, calculated as the difference between the business assets and its liabilities.