One of the Major Advantages of a Sole Proprietorship Is

question 26

Multiple Choice

One of the major advantages of a sole proprietorship is

• A) that the owner has limited liability.
• B) that stock in the proprietorship can be easily transferred.
• C) that it is exempt from many tax rules that would otherwise apply when employees are hired by the firm.
• D) low operating costs.

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Definitions:

Issued

Refers to stocks or bonds that have been distributed to investors but does not relate to their release by a company or government.

Charters

Legal documents or contracts specifying the rights, privileges, and duties of an organization, or the hiring of a vessel for a specific purpose.

State Laws

Legislation that is enacted by individual states within a country, governing various aspects of life and business within those territorial boundaries.

Federal Laws

Federal laws refer to the body of law enacted by the federal government of a country, governing national issues.