One Disadvantage of the Proprietorship Is

question 96

Multiple Choice

One disadvantage of the proprietorship is:

• A)the least regulated form of business ownership.
• B)limited personal liability.
• C)excessive access to capital.
• D)limited skills and abilities.

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Definitions:

LLC

A Limited Liability Company is a U.S. business entity that merges the tax benefits of a partnership or sole proprietorship with the corporation's advantage of limited liability.

Partnership Taxation

The tax rules and regulations that apply to the income, deductions, and credits of a partnership and how they are reported to the partners.

Good Faith

A principle denoting honesty and sincerity of intention without any intent to deceive or defraud.

Fiduciary Duty

This is a legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or confidential information.