Which Disadvantage Is Common to Both Sole Proprietorships and Partnerships

question 82

Multiple Choice

Which disadvantage is common to both sole proprietorships and partnerships?

• A)single taxation
• B)complexity and costs in setting up
• C)depersonalization
• D)personal liability of owner(s)

---

Definitions:

MR = MC

The condition where marginal revenue equals marginal cost, often used to determine the profit-maximizing output level for a firm.

Total Revenue

The entire amount of income received by a company from its sales of goods or services before any expenses are subtracted.

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good varies as the volume of production increases.

Industry Supply Curve

A graphical representation showing the total quantity of a good or service that businesses in an industry are willing to sell at various price levels.