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:

Cost of Appraisal

The expenses associated with the activities to measure, evaluate, or audit products or services to ensure conformance with quality standards.

Group Involvement

The participation and collaboration of multiple individuals or teams in the pursuit of a common goal or project.

68-95-99.7 Rule

A statistical rule stating that in a normal distribution, about 68% of observed values fall within one standard deviation, 95% within two, and 99.7% within three standard deviations of the mean.

Normally Distributed

Describes a statistical distribution where data points are symmetrically distributed around the mean, forming a bell-shaped curve.