The Disadvantage of the Sole Proprietorship Is

question 39

Multiple Choice

The disadvantage of the sole proprietorship is

• A) lack of flexibility in managing the business.
• B) unlimited liability for debts of the business.
• C) ease of formation.
• D) none of these.

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Definitions:

Conventional Budgeting

A traditional approach to budgeting that involves planning income and expenditures for a fixed period.

Resource Consumption

The process of using resources such as materials, energy, or time, typically quantified for analysis and optimization in various contexts.

Two-Way Analysis

A method used in statistics or research to examine the effect of two different variables on an outcome simultaneously.

Overhead Variances

Overhead Variances are differences between the actual overhead incurred and the standard or expected overhead, used to assess the efficiency of overhead cost control.