A Disadvantage of a Sole Proprietorship Is That

question 41

Multiple Choice

A disadvantage of a sole proprietorship is that:

• A) partners may not agree on decision making.
• B) profits are taxed only once.
• C) profits are taxed at a personal income level.
• D) there is limited ability for expansion.

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Definitions:

Adequate

Sufficient to satisfy a requirement or meet a need.

Executor

A legal term referring to an individual appointed to carry out the terms of a will.

Estate Tax

Estate Tax is a tax levied on the net value of the estate of a deceased person before it is distributed to the heirs, applied in certain jurisdictions.

Trust Fund

A trust fund is a legal arrangement in which assets are held by a trustee for the benefit of another party, often used for estate planning or to manage assets for individuals or charities.