A Disadvantage of a Sole Proprietorship Is That

question 52

Multiple Choice

A disadvantage of a sole proprietorship is that:

• A) there is flexibility in decision making.
• B) profits are taxed only once.
• C) issuing stocks is expensive.
• D) the business ends when the owner dies.

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Definitions:

Budget Line

A graphical representation showing the combination of goods a consumer can purchase with a fixed income.

Money Income

The total amount of monetary earnings or receipts a person or household receives within a given period.

Utility

In economics, the total satisfaction received from consuming a good or service.

Entrepreneur

An individual who starts, organizes, manages, and assumes the risks of a business or enterprise, often innovating and creating new products, services, or business models.