Which of the following is an advantage of starting a new business as a sole proprietorship?
A) The owner has limited personal liability.
B) Business profits are not taxed.
C) A sole proprietorship has few government rules and regulations to comply with.
D) A sole proprietorship can easily attain additional funding.
C
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A monopolistically competitive firm in short-run equilibrium:
A) will make negative profit (lose money). B) will make zero profit (break-even). C) will make positive profit. D) Any of the above are possible.
Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000 . the firm's marginal cost equals $15 and its average total cost equals $11 . The firm sells its output for $12 per unit. To maximize its profit, the firm should
a. increase its output. b. continue to produce 1,000 units. c. decrease its output, but continue to produce. d. shut down.