Which of the Following Is Not an Advantage of a Proprietorship

question 70

Multiple Choice

Which of the following is not an advantage of a proprietorship?

• A) Inexpensive to form
• B) Not regulated heavily
• C) Unlimited liability
• D) Taxed like an individual

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Definitions:

Cover

A buyer’s or lessee’s purchase on the open market of goods to substitute for those promised but never delivered by the seller or lessor. Under the Uniform Commercial Code, if the cost of cover exceeds the cost of the contract goods, the buyer or lessee can recover the difference, plus incidental and consequential damages.

Remedies

Legal means for enforcing a right or redressing a wrong, including compensation, injunctions, and specific performance.

UCC

Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.

Shipment Contract

A contract where the seller is required to send the goods to the buyer, but the title to the goods passes when the seller fulfills their obligation to ship.