Which of the Following Is an Advantage of a Sole

question 85

Multiple Choice

Which of the following is an advantage of a sole proprietorship?

• A) A sole proprietor is personally obligated for the debt of the proprietorship.
• B) A sole proprietorship is not taxed as an organization.
• C) In a sole proprietorship, liability is shared with many partners.
• D) A sole proprietorship is the least expensive business organization to create.
• E) A sole proprietorship's business activity may be more stable than the proprietor's willingness to remain actively involved in the business.

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Definitions:

Return On Stockholders' Equity

A financial ratio that measures a company's ability to generate profits from its shareholders' equity.

Return On Common Stockholders' Equity

A measure of financial performance that indicates how much net income a company generates with the money shareholders have invested.

Earnings Per Share

A financial measure that calculates the portion of a company’s profit allocated to each outstanding share of common stock, indicating profitability.

Discontinued Operations

Components of a business that have been sold or discontinued, reported separately from continuing operations in financial statements.