The Most Significant Disadvantage of Using a Sole Proprietorship Is

question 28

Multiple Choice

The most significant disadvantage of using a sole proprietorship is that

• A)the sole proprietor alone must do all the work in the sole proprietorship business.
• B)the sole proprietor has unlimited personal liability for all obligations of the business.
• C)the sole proprietor must obtain a business licence.
• D)the sole proprietor must register a business name.
• E)it is simple to terminate.

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Definitions:

AAA (Agricultural Adjustment Act)

A New Deal legislation passed in 1933 aimed at boosting agricultural prices by reducing surpluses through the payment of subsidies to farmers.

Sharecroppers

Individuals who farm land owned by another and pay rent either in cash or by sharing a portion of the produce.

Corporate Taxes

Taxes imposed on the income or profit of corporations and businesses by the government.

Nationalizing Industries

The process by which a government takes control of private industries and transforms them into state-owned enterprises.