One Disadvantage of a Sole Proprietorship as a Form of Business

question 96

Multiple Choice

One disadvantage of a sole proprietorship as a form of business organization is that

• A)sole proprietorships cannot lower the transaction costs associated with contracting with resource owners
• B)sole proprietorships are less efficient than corporations, because they are less specialized in production
• C)owners of sole proprietorships can lose all their personal assets if the business is sued or fails
• D)owners of sole proprietorships generally find it difficult to negotiate separation agreements with the other partners in the firm
• E)owners of sole proprietorships generally have very little control over how they operate their businesses

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Definitions:

Macro-sociological

Related to or involving the analysis of large-scale social processes and structures.

Ethnomethodologists

Scientists investigating the ways in which individuals use daily interactions to form a collective social understanding.

Social Life

The interactions, activities, and relationships that occur among individuals in societies, forming the basis of social structure and culture.

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The act of devoting time and attention to gaining knowledge on a subject, particularly through reading, research, or practice.