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25 Sep 2019

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

 

(i) unlimited liability 

(ii) no independent legal identity 

(iii) the owner is the recipient of all the after-tax profits 

(iv) harder to secure business credit or financing

 

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Lelia Lubowitz
Lelia LubowitzLv2
8 Mar 2019

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Related questions

Which of the following is an advantage of a sole proprietorship? 
 
(i) Least regulated form of a business organization.
(ii) Easy and inexpensive to form.
(iii) Ease of dissolving the business.
(iv) Retention of all profits. 
(v) All of the above. 

14. Assume that you set up a sole proprietorship and your lawyer tells you that as the owner you will face unlimited liability. What does that mean? a. You are liable for organizing the business. b. You could stand to lose your personal wealth if the business goes bankrupt. c. There is no legal responsibility of the business in case a customer sues, as the business is legally untouchable. d. None of these explain what unlimited liability means.

Indicate whether the following statement best describes a corporation, a sole proprietorship, or a partnership.

a. Liability is limited to the amount invested.

b. Unlimited personal liability.

c. Unlimited liability for oneself and one's partner's actions.

d. Ability to share work and risks of ownership without issuing shares.

e. Direct control by the owner.

f. Most difficult to organize.

g. Greater ability to secure funds from outside investors.

h. Accounts for largest sales receipts in the United States.

i. The most common form of business.

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