Asked by
Michael Hirsch
on Nov 06, 2024
Verified
Which of the following is an advantage of a sole proprietorship?
A) It is heavily regulated by the government.
B) It has limited liability for the debts incurred by the business.
C) It is hard to dissolve.
D) It is unaffected by the death or withdrawal of its owner.
E) It is easy and inexpensive to form.
Sole Proprietorship
A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.
Limited Liability
A corporate structure where an individual's financial risk in the business is restricted to their investment in the company.
- Evaluate the merits and limitations of a sole proprietorship in contrast with different business structures.
- Recognize the conditions under which a business can be easily formed or dissolved.
Verified Answer
MP
Learning Objectives
- Evaluate the merits and limitations of a sole proprietorship in contrast with different business structures.
- Recognize the conditions under which a business can be easily formed or dissolved.
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