Which of the following types of economic regulation is most likely to encourage firms to inflate their costs?

Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one advantage to Torrie of setting up her business as a sole proprietorship?

A) As a sole proprietor, Torrie would have the ability to share risk with shareholders. B) As a sole proprietor, Torrie would face limited liability. C) As a sole proprietor, Torrie would have both ownership and control over the business. D) All of the above would be advantages of setting up her business as a sole proprietorship.

One lesson of business:

a. is tracing the consequences of a policy b. promoting a policy change to eradicate inefficiencies c. buy a low-valued assets and sell it to someone who values it higher. d. None of the above