The Main Disadvantage of the Sole Proprietorship Form of Ownership

question 6

Multiple Choice

The main disadvantage of the sole proprietorship form of ownership is:

• A) tax regulations
• B) issues of liability
• C) access to capital markets
• D) none of the above

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Definitions:

Partnership End

The termination of a partnership agreement, which can occur for various reasons such as the expiry of the partnership term, mutual agreement, or death of a partner.

Fiduciary Duty

An obligation to act in the best interest of another party, typically in a relationship of trust, such as between a trustee and a beneficiary.

Fiduciary Duty

An obligation to act in the best interest of another party, typically in a trustee-beneficiary relationship.

Federal Government

The national government of a federal country that holds the authority to govern the entire nation, as distinguished from state or provincial governments.