All of the Following Is an Advantage of a Sole

question 63

Multiple Choice

All of the following is an advantage of a sole proprietorship except:

• A) creating one is easy and inexpensive
• B) limited liability
• C) it is not subject to double taxation
• D) the owner maintains complete control of the business
• E) business losses can be deducted against the sole proprietor's other sources of income

---

Definitions:

Shareholders' Meeting

A gathering of a company's shareholders, designed to inform them of the company's performance, elect the board of directors, and make decisions on corporate matters.

Fiduciary Duty

A duty to place a client’s interest above the professional’s own interests.

Debentures

A type of long-term security issued by a company, backed only by the general creditworthiness and reputation of the issuer.

Mortgage Bonds

Debt securities secured by a mortgage or collection of mortgages, giving holders a claim on the underlying property.