One Disadvantage of a Sole Proprietorship as a Form of Business

question 96

Multiple Choice

One disadvantage of a sole proprietorship as a form of business organization is that

• A)sole proprietorships cannot lower the transaction costs associated with contracting with resource owners
• B)sole proprietorships are less efficient than corporations, because they are less specialized in production
• C)owners of sole proprietorships can lose all their personal assets if the business is sued or fails
• D)owners of sole proprietorships generally find it difficult to negotiate separation agreements with the other partners in the firm
• E)owners of sole proprietorships generally have very little control over how they operate their businesses

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Definitions:

Work Environment Support

The degree to which an organization provides the physical, emotional, and informational resources necessary for employees to perform their jobs effectively.

Performance Metrics

Quantifiable indicators used to evaluate the effectiveness or success of an individual, team, or organization in achieving objectives.

Opportunity To Use Skills

Situations or environments that allow individuals to apply their knowledge and competencies effectively.

Training Framework

A structured outline or strategy designed to guide the development, delivery, and assessment of training programs.