What Is the Chief Disadvantage of the Sole Proprietorship as a Form

question 72

Multiple Choice

What is the chief disadvantage of the sole proprietorship as a form of business organization when compared to the corporate form?

• A) Sole proprietorships are subject to double taxation of profits.
• B) The cost of formation.
• C) Inadequate profit sharing.
• D) Owners have unlimited liability.

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Definitions:

Similar Job

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Proper Notice

A legal requirement to inform someone of a decision or action, usually within a specific timeframe and through an acceptable method of communication.

Informational Picketing

Picketing designed to truthfully inform the public of a labor dispute between an employer and the employees.

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.