Which of the Following Is NOT an Advantage of the Sole

question 88

Multiple Choice

Which of the following is NOT an advantage of the sole proprietorship?

• A) Limited liability
• B) No time limit imposed on its existence
• C) No legal requirements for starting the business
• D) None of the above

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Definitions:

Compound Financial Instrument

A financial instrument that has characteristics that are a combination of a financial asset, financial liability or equity instrument.

Convertible Notes

Debt instruments that can be converted into a specified number of shares of the issuing company at certain times during its life, usually at the discretion of the note holder.

Liability

A present obligation of the entity to transfer an economic resource as a result of past events.

Equity

The value of an owner's interest in a property or business, after subtracting liabilities.