A Disadvantage of the Proprietorship Form of Business Organization Is

question 302

Multiple Choice

A disadvantage of the proprietorship form of business organization is

• A) its limited access to capital.
• B) its limited liability.
• C) that it can issue only one class of stock.
• D) that the owner must fight a lot of red tape to form the firm.

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Definitions:

Normal Goods

Goods for which demand increases as consumer income rises, and falls when consumer income decreases, opposite to inferior goods.

Inferior Goods

Goods whose demand decreases as the income of consumers increases, in contrast to normal goods.

Income

Income generated regularly from employment or investments.

Soda

A carbonated soft drink that is flavored and sweetened, often consumed as a beverage.