All of the Following Are Disadvantages of the Proprietorship Form

question 93

Multiple Choice

All of the following are disadvantages of the proprietorship form of business except

• A)the entire burden of running the company falls on one person's shoulder's.
• B)there are fewer legal complications than any other form of business.
• C)the owner may be sued for everything she has if the business is sued.
• D)it is a lot harder for one person,rather than two or more people,to raise capital.

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Definitions:

Cost Synergy

The reduction in total costs that can result from merging or joining two separate entities, processes, or systems, leading to improved efficiency or economies of scale.

Corporate Recycling

The processes and strategies implemented by companies to reuse materials and reduce waste, reflecting a commitment to environmental sustainability.

Porter's Model

Also known as Porter’s Five Forces analysis, it is a framework for analyzing a company's competitive environment and identifying the forces affecting profitability.

Long-term Earnings Growth

The increase in an organization's earnings over a substantial period, indicating healthy financial growth and potential for future investments.