Question

which of the following is an advantage of the sole proprietorship form of ownership?
a) split responsibility
b) limited liability
c) control over the business
d) unlimited liability
question 6 (5 points)
which of the following is a risk of large - scale government borrowing?
a) lower interest rates
b) higher prices and interest rates
c) lower employment

Explanation:

• For the first question (sole proprietorship):
• In a sole proprietorship, the owner has complete control over the business. There is no split responsibility as in a partnership. Limited liability is not a feature (owners have unlimited liability). So, control over the business is an advantage.
• For the second question (government borrowing):
• When the government borrows on a large - scale, it can increase the demand for loanable funds. This increased demand leads to higher interest rates. Also, if the government spends the borrowed money in a way that increases aggregate demand without a corresponding increase in aggregate supply in the short - run, it can lead to higher prices. Lower interest rates are not a risk (opposite is true). There is no direct and consistent relationship between large - scale government borrowing and lower employment in the context of this question.

Answer:

• First question: C. Control over the business
• Second question: B. Higher prices and interest rates