Which of the Following Is One of the Main Disadvantages

question 141

Multiple Choice

Which of the following is one of the main disadvantages of a sole proprietorship as a form of business organization?  

• A) Sole proprietorships cannot lower the transaction costs associated with contracting with resource owners. 
• B) Sole proprietorships are less efficient than corporations, because they are less specialized in production. 
• C) Owners of sole proprietorships can lose all their personal assets if the business is sued or fails. 
• D) Owners of sole proprietorships generally find it difficult to negotiate separation agreements with the other partners in the firm.

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Definitions:

Carl Rogers

An influential American psychologist best known for developing the client-centered therapy approach, emphasizing the importance of a supportive and non-judgmental therapeutic environment.

Situational Characteristics

Features or aspects of an environment or context that influence individuals' behavior, emotions, or thought processes.

Personality

An individual’s characteristic pattern of thinking, feeling, and behaving, distinguishing one person from another.

Personality Inventory

A questionnaire or assessment tool used to evaluate a person’s character traits, behaviors, and attitudes.