One of the Disadvantages Associated with Sole Proprietorships Is That

question 107

Multiple Choice

One of the disadvantages associated with sole proprietorships is that:

• A)raising working capital is difficult.
• B)acquiring total ownership of the business's finances is not easy.
• C)creating a sole proprietorship is a complicated process.
• D)obtaining licenses and permits is difficult.
• E)making autonomous business decisions is difficult.

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Definitions:

Frames

A structure for organizing or enclosing something, often used metaphorically to describe conceptual boundaries or perspectives.

Preferences

Individual likings or choices among various options or alternatives.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, often referred to as the "I knew it all along" phenomenon.

Representativeness Heuristic

A cognitive shortcut where the likelihood of an object belonging to a category is judged based on how typical the object appears to be of that category.