A single proprietorship is a form of business organization which:
a) has limited liability.
b) has unlimited access to money capital.
c) has a single owner but has directors who are responsible for the firm?s debts.
d) has one owner-manager who is personally responsible for the firm?s actions and debts.
e) allows easy transferability of ownership by the trading of shares.
Ans: d) has one owner-manager who is personally responsible for the firm?s actions and debts.
You might also like to view...
Assume you set up a sole proprietorship and your lawyer tells you that as the owner, you could stand to lose your personal wealth if the business goes bankrupt. This means a sole proprietorship
A) is not a good type of business to set up. B) faces limited liability. C) faces unlimited liability. D) has little chance of succeeding.
For a closed economy, which of the following conditions must be satisfied for equilibrium to be maintained?
A) G = T B) X = IM = 0 C) C = S D) none of the above