One of the Disadvantages of a Sole Proprietorship Is That

question 81

True/False

One of the disadvantages of a sole proprietorship is that the owner is liable for the losses of the business.

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Definitions:

Variable Expenses

Costs that fluctuate with the level of output or sales, such as raw materials and sales commissions.

Fixed Expenses

Costs that remain constant over a period and are not affected by changes in business activity levels.

Variable Expenses

Costs that vary directly with the level of activity or production output, such as raw materials and direct labor.

Break-even Point

The point at which total costs and total revenues are equal, meaning there is no profit or loss.