A Significant Disadvantage of Owning a Sole Proprietorship Is The

question 11

Multiple Choice

A significant disadvantage of owning a sole proprietorship is the:

• A)overwhelming time commitment often required of the owner.
• B)possibility of limited liability.
• C)lack of incentives to motivate the owner.
• D)heavy tax liability that must be assumed.

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Definitions:

Flood Control System

An infrastructure or set of strategies intended to manage the potential negative impacts of flooding on communities, including prevention measures and emergency responses.

Insurer

An entity that provides insurance coverage, assuming the risk of loss for its policyholders in exchange for premium payments.

Coastal Town

A town situated on or near a coast, often affected by maritime activities and economies.

Moral Hazard

A situation in economic theory where one party is more likely to take risks because another party bears the cost of those risks.