Which of the Following Is a Disadvantage of the Sole

question 21

Multiple Choice

Which of the following is a disadvantage of the sole proprietorship form of business organization?

• A) The proprietor is personally liable for all losses incurred by the proprietorship.
• B) The proprietor does not get to retain all profits of the business.
• C) The proprietorship suffers double taxation.
• D) Establishing the proprietorship requires more forms and other legal formalities than any other form of organization.

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Definitions:

Population Mean

The average of all the members of a population.

Population Standard Deviation

A measure of the dispersion or spread of a set of data points in a population, calculated as the square root of the variance.

Interval Estimate

An estimate of a population parameter that is given as a range of values, usually defined by two numbers forming an interval believed to contain the parameter.

Interval Estimate

An estimate of a population parameter given as a range (interval) of values, defined by upper and lower bounds.