Which of the following is an advantage of a sole proprietorship?

A) The owner of a sole proprietorship has no liability.
B) The owner of a sole proprietorship has complete control over the business.
C) The sole proprietorship's existence does not depend entirely upon the sole proprietor.
D) Owners of sole proprietorships can raise a lot of cash quickly for expansion purposes.

Question

Melissa Marino · Accepted Answer

Final Answer : B, Explanation :  The advantage of a sole proprietorship is that the owner has complete control over the business. Option A is incorrect because the owner of a sole proprietorship is personally liable for the business's debts and actions. Option C is incorrect because the sole proprietorship's existence is entirely dependent on the sole proprietor. Option D is incorrect because it is difficult for sole proprietors to raise capital quickly as they have limited access to sources of funding.

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