Which of the Following Statements Is a Disadvantage of a Sole

question 19

Multiple Choice

Which of the following statements is a disadvantage of a sole proprietorship?

• A)The taxation treatment of partnerships can be a disadvantage.
• B)It is more expensive to establish than a company.
• C)It can be difficult to raise funds for expansion.
• D)There are more regulatory requirements than a company.

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Definitions:

Two Bosses

A work situation where an employee reports to two different managers or supervisors simultaneously.

Matrix Structure

An organizational structure that combines two or more types of structures, typically functional and product-based.

Problem Solving

The process of identifying a problem, developing possible solution paths, and taking appropriate actions to resolve the problem.

Hierarchy

The organization of people or entities in a ranked order, often used to designate authority, responsibility, and reporting relationships within structures like corporations.