Asked by Alvin Sebastian on May 18, 2024
Verified
Which of the following is a characteristic of a sole proprietorship?
A) Business owned by more than one person
B) Easy to form
C) Each stockholder acts as an owner of the company
D) Can continue indefinitely
Sole Proprietorship
A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.
Stockholder
An individual or entity that owns shares in a corporation, thereby having a claim on part of its assets and earnings.
Indefinitely
For an unlimited or unspecified period of time, without a predetermined end point.
- Absorb the specifics, upsides, and downsides of different business configurations (sole proprietorship, partnership, corporation).
Verified Answer
NB
Nicole BushellMay 23, 2024
Final Answer :
B
Explanation :
Sole proprietorships are known for being easy to form, requiring less paperwork and legal formalities compared to other business structures.
Learning Objectives
- Absorb the specifics, upsides, and downsides of different business configurations (sole proprietorship, partnership, corporation).