The Most Significant Limitation on Use of a Sole Proprietorship

question 18

Multiple Choice

The most significant limitation on use of a sole proprietorship is that

• A) the sole proprietor alone must do all the work in the sole proprietorship business.
• B) it is simple to terminate.
• C) the sole proprietor has unlimited personal liability for all obligations of the sole proprietorship business.
• D) the sole proprietor must obtain a business licence.
• E) the sole proprietor must register a business name.

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Definitions:

Error In Reasoning

A mistake or flaw in the logical process of deducing conclusions, often leading to incorrect or invalid arguments.

Premise

A statement or proposition from which another is inferred or follows as a conclusion, used as the basis for an argument.

Subjectivism

A philosophical stance asserting that knowledge and value are influenced by and dependent upon personal perspectives and experiences.

Fallacy

A mistake in the process of reasoning which makes an argument fundamentally incorrect.