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:

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than its competitors, leading to more efficient trading opportunities.

User Fees

Charges levied for the use of a particular service or facility, often imposed by governments or businesses.

Elasticities

Measures of how much the quantity demanded or supplied of a good responds to changes in price, income, or other factors, indicating the sensitivity of demand or supply to changes.

Elasticity Value

A measure in economics to show how much the quantity demanded of a good or service changes in response to a change in its price.