Which of the Following Statements Is True of Sole Proprietorship

question 43

Multiple Choice

Which of the following statements is true of sole proprietorship?

• A) A sole proprietorship is the most expensive type of business to start.
• B) The life of a sole proprietorship is limited.
• C) Sole proprietorships must rely on equity contributions from the public.
• D) The liability of owners of a sole proprietorship is limited.

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Definitions:

Pareto Optimality

A distribution of resources where no one can be made better off without causing detriment to at least one other person.

Utilities Possibilities Frontier

A graphical representation that shows the maximum number of goods or services that two countries can produce using their resources efficiently.

Efficient

Achieving maximum productivity with minimum wasted effort or expense; effectively utilizing resources.

Equitable

Fair and impartial treatment or distribution, often in the context of socio-economic policies.