Torrie Is Thinking of Starting Up a Small Business Selling

question 34

Multiple Choice

Torrie is thinking of starting up a small business selling hand-painted wine glasses.She is considering setting up her business as a sole proprietorship.What is one disadvantage to Torrie of setting up her business as a sole proprietorship?

• A)As a sole proprietor,Torrie would be taxed twice.
• B)As a sole proprietor,Torrie would not have control of the business.
• C)As a sole proprietor,Torrie would face unlimited liability.
• D)As a sole proprietor,Torrie would be subject to significant rules and regulations.

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Definitions:

Financial Markets

Marketplaces where participants can trade various financial instruments, such as stocks, bonds, currencies, and derivatives.

Unlimited Liability

A type of business ownership in which the owners are personally responsible for all of the debts of the business, leaving personal assets vulnerable.

Primary Markets

Markets where new securities are issued and sold for the first time to investors, including initial public offerings (IPOs).

Secondary Markets

Markets where investors buy and sell securities or assets that have already been issued or owned, such as the stock market.