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:

Need for Power

A personal drive and motivation to influence, control, or have authority over others.

Personal Power

The influence or authority an individual has over others stemming from personal traits, skills, or relationships, rather than from formal positions of authority.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives to achieve a desired goal.

Social Power

The ability of an individual or group to influence or control the actions, beliefs, or behavior of others in a social context.