One of the Major Disadvantages of a Sole Proprietorship Is

question 88

Multiple Choice

One of the major disadvantages of a sole proprietorship is the

• A) possibility of disagreements between owners.
• B) unlimited liability the owner has for the debts of the firm.
• C) fact that any income earned by this type of business is taxed twice.
• D) high cost of starting or ending the company.

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Definitions:

Quotas

Regulatory measures imposing limits on the amount or value of goods that can be traded, typically used in international trade.

Export Subsidies

Government payments made to domestic firms to encourage exports.

Tariff

A tax imposed on imported goods and services to increase their price, intended to protect domestic industries and adjust trade deficits.

Tax

A mandatory financial charge or levy imposed by a government on individuals or entities to fund public services and projects.