Which of the Following Is an Advantage of a Sole

question 113

Multiple Choice

Which of the following is an advantage of a sole proprietorship?

• A)the ability to pool resources
• B)limited liability
• C)double tax exemption of the firm's earnings
• D)ease of organization
• E)ease of raising funds

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Definitions:

Principal

In a legal context, the principal is the party who grants authority to an agent to act on their behalf in legal or financial matters.

Apparent Authority

A situation where someone appears to have the power to act on behalf of another (such as an employer), even if they do not have actual authority.

Ratify

To formally approve or confirm an agreement or act, making it officially valid.

Breach

The failure to perform obligations as stipulated in a contract, leading to potential legal consequences.