A Major Disadvantage of the Sole Proprietorship Is: ______

question 13

Multiple Choice

A major disadvantage of the sole proprietorship is: ______.

• A) no organizational fees.
• B) the sole proprietor obtains all of the profits.
• C) the sole proprietor is personally liable for the debts of the sole proprietorship.
• D) the sole proprietor is free to make all business decisions concerning operation of the sole proprietorship.

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Definitions:

Capital Gains

are the increase in value of an investment or real estate, realized when the asset is sold for more than its purchase price.

Extra Cash Dividend

A supplementary dividend paid to shareholders that is above the company's normal dividend level.

Stock Price

The cost of purchasing a single share of a particular stock, which can fluctuate based on market conditions.

Average Investor

A term referring to a typical or representative investor, often considered in discussions about investment strategies or market behaviors.