Which of the Following Is a Disadvantage of a Sole

question 13

Multiple Choice

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

• A)Entrenched management.
• B)Double taxation.
• C)Unlimited liability.
• D)Excessive regulation.

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Definitions:

Differential Cost

The difference in cost between two alternative decisions or changes in output levels.

Sunk Cost

Sunk cost represents money already spent and permanently lost, which cannot be recovered and should not influence future financial decisions.

Differential Cost

Refers to the difference in total cost that will result from selecting one option over another in decision-making situations.

Differential Revenue

The difference in revenue generated under two different scenarios or courses of action.