One Disadvantage of Sole Proprietorship Is the ________

question 93

Multiple Choice

One disadvantage of sole proprietorship is the ________.

• A)possibility of disagreements between different owners
• B)unlimited liability the owner has for the debts of the company
• C)fact that any income earned by this type of business is taxed twice
• D)cost of starting or ending the company is higher than other businesses

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Definitions:

Service Department Expenses

Costs associated with departments that support the primary operations of a company, like IT support, human resources, and maintenance.

Activity Base

A measure used as a foundation for allocating costs in activity-based costing, representing transactions or events that cause costs to be incurred.

Payroll Checks

Checks issued to employees as payment for their services, representing wages or salaries.

Activity Base

A measure or factor used as a basis for allocating costs in managerial accounting, often related to the volume of production activity or the level of service provided.