A Disadvantage of the Sole Proprietorship Is

question 29

Multiple Choice

A disadvantage of the sole proprietorship is

• A) the difficulty of formation.
• B) the inflexibility of management and control.
• C) the unlimited liability of the principal.
• D) the double taxation that occurs.

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Definitions:

Top Management Group

signifies the senior-most executives or administrators in an organization, responsible for strategic decision-making and overall management.

Clear Hierarchy

An organizational structure where roles, responsibilities, and levels of authority are well-defined and understood by all members.

CEO

Chief Executive Officer, the highest-ranking executive in a company, responsible for making major corporate decisions, managing overall operations, and acting as the main point of communication between the board of directors and corporate operations.

Core Competencies

Fundamental strengths and abilities of a person or organization that provide it with a competitive advantage.