The Most Significant Disadvantage of the Sole Proprietorship Form of Doing

question 20

Multiple Choice

The most significant disadvantage of the sole proprietorship form of doing business is:

• A)More difficult for the owner to raise capital
• B)The owner has unlimited liability
• C)The survival of the business depends on the owner
• D)It may require getting a DBA
• E)It cannot be used for high-growth ventures

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Definitions:

Drawer

In banking, the person who writes or creates a check or draft instructing the bank to pay the stated amount to a third party.

Recourse

The legal right to demand a penalty, compensation, or satisfaction for a harm or loss.

Forged

Forged denotes something that has been counterfeit or fraudulently altered or replicated, such as a document, artwork, or signature.

Altered Check

A check that has been tampered with after its original issuance, often changing the name of the payee or the amount, with the intent to defraud.