Sole Proprietorships Offer Several Advantages, Which Include All of the Following

question 38

Multiple Choice

Sole proprietorships offer several advantages, which include all of the following except ____.

• A)they are easy and inexpensive to create
• B)they give the owner complete authority
• C)dividends are paid to owners
• D)the income from the business is taxed only once, at the owner's personal income tax rate
• E)there are no major reporting requirements, as with a corporation

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Definitions:

Truck

A motor vehicle designed to transport cargo, varying in size, power, and configuration, significant in commercial transportation and logistics.

Trial Balance Totals

The aggregate sum of all debit and credit balances in a trial balance, which should equal each other, verifying the mathematical accuracy of the ledger accounts.

Cash Withdrawal

The act of taking money out of a bank account, which decreases the account balance.

Accounts Receivable

Unsettled dues from customers to a business for goods or services that have already been delivered or used.