A Potential Drawback of Sole Proprietorships and Partnerships Is That

question 122

Multiple Choice

A potential drawback of sole proprietorships and partnerships is that the parties involved have:

• A) limited financial liability
• B) only corporate liability
• C) unlimited liability
• D) partial protection from creditors for business debts
• E) only corporate liability and partial protection from creditors for business debts

---

Definitions:

Product Life Cycle

The sequence of stages from introduction to growth, maturity, and decline through which a product goes over its lifetime.

Wheel of Retailing

A theory that describes how retail outlets begin at the low end of the market and gradually upgrade their facilities and offerings to move upmarket.

Pricing Cycle

The recurring pattern of changes in price levels for products or services, often influenced by demand, supply, and other market conditions.

Product Life Cycle

The progression of a product through stages from introduction to growth, maturity, and decline.