What Are the Benefits of a Sole Proprietorship

question 4

Multiple Choice

What are the benefits of a sole proprietorship?

• A) Single owner and no responsibility
• B) Sharing financial rewards with others
• C) Single owner and full responsibility
• D) None of the above

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Definitions:

Relevant Range

The range of activity within which the assumptions about fixed and variable costs are valid for a specific business.

Mixed Costs

Expenses that have both fixed and variable components, changing with the level of production or sales activity but not in direct proportion.

Differential Costs

The difference in cost between two alternative decisions or changes in levels of operation.

Variable

An element that can change or vary, often used in mathematical modeling, programming, and statistical analysis to represent changeable data.