Which of the Following Is Not a Disadvantage of Sole

question 14

Multiple Choice

Which of the following is not a disadvantage of sole proprietorships?

• A) unlimited liability
• B) lack of capital
• C) double taxation
• D) lack of continuity
• E) limited management skills

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Definitions:

Transaction

An economic event or condition that directly changes an entity's financial condition or its results of operations.

Debit And Credit

Fundamental concepts in accounting that represent the increase or decrease in an account balance; debits increase asset or expense accounts, while credits increase liability, equity, or revenue accounts.

Chart Of Accounts

An organized list of all accounts in a company's financial system, which is used to classify transactions.

Financial Statement Order

The sequence in which the key financial documents are prepared, typically including the income statement, balance sheet, statement of cash flows, and statement of retained earnings.