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:

Emotional Problems

Issues related to managing emotions, which can affect a person's mental health and lead to conditions such as depression or anxiety.

Antisocial Behavior

Actions that harm or lack consideration for the well-being of others.

Brain Maturity

Refers to the developmental process where the brain reaches its full cognitive and emotional capabilities.

Cognitive Abilities

Mental skills that include reasoning, memory, attention, and language that enable the processing of information.