Which of the Following Is True Concerning a Sole Proprietorship

question 38

Multiple Choice

Which of the following is true concerning a sole proprietorship?

• A)It has limited liability for the owner.
• B)The business survives the death of the owner.
• C)It has only one owner.
• D)Profits are taxed at the company tax rate.

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Definitions:

Resource Inputs

The materials, labor, and capital that are used to produce goods and services.

Organisational Outputs

The results or products that come from the functioning of an organization, including goods, services, and ideas.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Competitive Advantage

The advantage a company has over its competitors, allowing it to generate greater sales or margins and/or retain more customers.