What Is the Primary Disadvantage of Both, a Sole Proprietorship

question 96

Multiple Choice

What is the primary disadvantage of both, a sole proprietorship and a partnership that a corporation overcomes?

• A) no access to capital
• B) taxing complications
• C) unlimited liability
• D) ease of start-up
• E) lack of secrecy

---

Definitions:

Judicial Authority

The power vested in courts and judges to interpret laws, adjudicate disputes, and enforce legal decisions.

Federalists

A political group that supported the adoption of the U.S. Constitution, favoring a strong federal government.

Constitutional Amendment

A modification or change to the Constitution, requiring a specific process of approval, such as a supermajority vote.

26th Amendment

An amendment to the U.S. Constitution that lowered the voting age from 21 to 18 years, ratified in 1971.