Which of the Following Is an Advantage of a Sole

question 75

Multiple Choice

Which of the following is an advantage of a sole proprietorship over other business forms?

• A) low tax rates on dividends
• B) tax- exempt treatment of fringe benefits
• C) the deduction for compensation paid to the owner
• D) ease of formation

---

Definitions:

Diversified Market

A market characterized by a variety of products, services, or sectors, which reduces investment risk and capitalizes on different growth opportunities.

Hardware Store

A retail business that sells tools, building supplies, and household hardware for home improvement.

Expectant Mothers

Pregnant women in anticipation of giving birth, often requiring special healthcare, nutrition, and support throughout pregnancy.

Business Model Canvas

A strategic management template for developing new or documenting existing business models, visually outlining value propositions, customer relationships, and other key activities.