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.

---

Definitions:

Experimenting

The act of conducting a controlled test or investigation to discover, prove, or examine the validity of hypotheses or effects of actions.

Employee Feedback

Information, observations, and insights provided by colleagues and superiors regarding an employee's work performance, aimed at improving efficiency and effectiveness.

Customer Feedback

Information, insights, and opinions provided by customers regarding their experience with a product or service, which can be used for improvement and optimization.

Organizational Learning

The process through which an organization acquires, develops, and transfers knowledge, enhancing its capabilities and improving performance.