Which of the Following Is a Disadvantage of Sole Proprietor

question 84

Multiple Choice

Which of the following is a disadvantage of sole proprietor ownership?

• A)Difficulty in raising capital
• B)No special taxation
• C)Ease of dissolution
• D)Ease of formation
• E)Freedom from government regulation

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Definitions:

Expected Annual

Refers to the anticipated yearly financial performance or returns, often used in the context of earnings, returns, or income.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Time Value

The difference between the current value of the option and the value of the option if it were immediately exercised.

Present Value

Present value signifies the current value of a future amount of money or a sequence of cash flows, discounted at a given rate of return.