The Most Critical Disadvantage of the Sole Proprietorship Is

question 52

Multiple Choice

The most critical disadvantage of the sole proprietorship is:

• A)unlimited personal liability.
• B)limited access to capital.
• C)lack of continuity.
• D)limited skills and capacities of the owner.

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Definitions:

Isoquant

A curve that represents all combinations of inputs that produce the same level of output in production theory.

Inputs

Factors or resources employed in producing goods, including time, manpower, and raw materials.

Lagrange Multipliers

A mathematical method used to find the maximum or minimum of a function subject to constraints.

Optimal Value

The most favorable or advantageous value that can be achieved under given constraints, often used in optimization problems.