A Disadvantage of Being a Sole Trader Is

question 12

Multiple Choice

A disadvantage of being a sole trader is:

• A) may pay higher taxes on business income.
• B) having a business that is inexpensive to start up and wind down.
• C) having very little government regulation.
• D) having total autonomy over business decisions.

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Definitions:

Acknowledgment

The act of recognizing or admitting something as true, often in the context of legal documents as a formal declaration that the document is signed voluntarily.

Zoning Ordinance Variances

Zoning Ordinance Variances are exceptions granted by a local government allowing a property to be used in a manner that differs from the restrictions outlined in the zoning ordinance.

Property Owner

An individual or entity that legally holds title to or owns real estate or other property.

Lien Theory

A legal concept regarding real estate financing that holds a mortgage as merely a lien on property title, rather than an actual transfer of title.