Single-owner proprietorships often unintentionally exaggerate their profits because they

Question

Quizplus · Accepted Answer

Single-owner proprietorships often neglect to consider the opportunity cost of the owner's labor, i.e., the salary that the owner could have earned if working for someone else. This can result in an understatement of costs and thus an overstatement of profits. Other answer choices do not accurately reflect why single-owner proprietorships unintentionally exaggerate their profits.

Single-Owner Proprietorships Often Unintentionally Exaggerate Their Profits Because They