What Is the Key Advantage of the Sole Proprietorship,beyond the Simplicity

question 57

Multiple Choice

What is the key advantage of the Sole Proprietorship,beyond the simplicity of the commencement of the operation?

• A) the sole proprietor is 100% personally exposed to the liabilities incurred by the business
• B) the sole proprietor has 100% control of the business
• C) the skill set of the business is limited to the skills possessed by the sole proprietor
• D) no real creation of a separate legal business entity
• E) limited to their personal capacity to invest and/or borrow money

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Definitions:

Creditor Beneficiary

A third party who benefits from a contract in which the promisor agrees to pay the promisee’s debt.

Public Policy

General principles or ideologies that guide the creation of laws and the operation of government, reflecting the societal values and norms.

Assignment of Rights

The transfer of a party's rights under a contract to another party, allowing them to benefit from those rights.

Assignment

The transfer of rights, property, or obligations from one party to another, often seen in contracts or legal agreements.