Which of the Following Is NOT a Disadvantage of the Sole

question 39

Multiple Choice

Which of the following is NOT a disadvantage of the sole proprietorship?

• A) limited lifetime of the business
• B) limited liability for the owner
• C) limited management expertise
• D) limited access to capital

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Definitions:

Leverage

The use of borrowed funds to increase the potential return of an investment.

Average Inventory

The mean value of a company's inventory over a specific period of time, used to calculate cost of goods sold and other financial metrics.

Days In Inventory

Days in inventory is a financial metric that measures the average number of days a company holds inventory before selling it, indicating the efficiency of inventory management.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.