Which of the Following Is an Advantage of a Sole

question 43

Multiple Choice

Which of the following is an advantage of a sole proprietorship?

• A) Sole proprietors are attractive candidates for investor capital.
• B) The sole proprietor has limited liability for all claims against the business.
• C) Capital can be raised through the sale of stock up to the amount authorized in the corporate charter.
• D) The income from the business is taxed only once at the owner's personal income tax rate.
• E) It is easier for sole proprietors to raise debt capital.

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Definitions:

Informational Support

The provision of advice, assistance, or guidance that helps an individual understand and navigate a situation.

Emotional Support

Assistance provided through empathy, concern, encouragement, and affirmation to help individuals cope with stress, problems, or situations.

Achievement-Oriented

A focus on setting and accomplishing challenging goals to achieve success.

Career Stage

The phase within a person's professional life that indicates their level of experience, responsibility, and ideally progression towards their career goals.