One of the Disadvantages of the Sole Proprietorship Is That

question 37

True/False

One of the disadvantages of the sole proprietorship is that the owner has unlimited liability.

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Definitions:

Plant Assets

Physical resources that are owned and used by a business and are permanent or have a long life; long-term or relatively permanent tangible assets such as equipment, machinery, and buildings that are used in normal business operations.

Decentralization

The distribution of decision-making power away from a central authority, allowing for greater autonomy at lower levels of an organization.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Support Department Allocation Rates

Ratios or percentages used to distribute the costs of support departments to producing or service departments based on agreed-upon methods.