The Sole Proprietor Has All of the Following Advantages,except

question 1

Multiple Choice

The sole proprietor has all of the following advantages,except

• A)choice of how to pay federal and local taxes.
• B)choice of location for the business.
• C)choice of services to be offered.
• D)choice of retirement plan.
• E)choice of product to be sold.

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in the form of cash.

Dividends Payable

A liability indicating the amount of dividends that a company has declared to pay out to its shareholders but has not yet paid.

Dividends Declared

profits that a company's board of directors has decided to distribute to shareholders, typically in the form of cash payments or additional shares.

Shareholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership interest of shareholders.