A Significant Disadvantage of Owning a Sole Proprietorship Is The

question 260

Multiple Choice

A significant disadvantage of owning a sole proprietorship is the:

• A)Possibility of limited liability.
• B)Heavy tax liability that must be assumed.
• C)Overwhelming time commitment often required of the owner.
• D)Lack of incentives to motivate the owner.

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Definitions:

Capacity Planning

The process of determining the production capacity needed by an organization to meet changing demands for its products.

Capacity Increment

The addition or increase in a system's or facility's ability to produce goods or services.

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Drum

In production and project management, often refers to the constraint or bottleneck resource that dictates the pace at which a process can run.