A Significant Disadvantage of Owning a Sole Proprietorship Is The

question 260

Multiple Choice

A significant disadvantage of owning a sole proprietorship is the:

• A)Possibility of limited liability.
• B)Heavy tax liability that must be assumed.
• C)Overwhelming time commitment often required of the owner.
• D)Lack of incentives to motivate the owner.

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Definitions:

Wealth

The abundance of valuable resources, assets, or material possessions an individual or entity controls.

Utility Function

Describes the relationship between the consumption of goods and the resulting level of satisfaction or utility for an individual.

Chocolate Factory

A manufacturing facility dedicated to the production of chocolate and chocolate-related products.

Flood

An overflow of water that submerges land that is usually dry, often caused by heavy rain or melting snow.