Which of the Following Is Correct with Respect to Sole

question 49

Multiple Choice

Which of the following is correct with respect to sole proprietorships?

• A)The sole proprietorship is a separate legal entity.
• B)A sole proprietorship exists where two or more people carry on business together with a view toward profits.
• C)The sole proprietor has limited liability.
• D)The sole proprietor has unlimited liability.
• E)A sole proprietorship must be incorporated.

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Desired Rate

The target interest rate set by an organization or individual for investment or financial returns, often guiding financial decisions and strategies.

Cash Payback Period

The time frame it takes for an investment to generate an amount of cash flow to recover its initial cost.