Which of the Following Is Not a Disadvantage of Sole

question 86

Multiple Choice

Which of the following is not a disadvantage of sole proprietorships?

• A) Unlimited liability
• B) Lack of money
• C) Double taxation
• D) Lack of continuity
• E) Limited management skills

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Definitions:

ROE

Return on Equity; a financial ratio indicating the profitability of a company in relation to its equity capital.

EPS

Earnings Per Share; a metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Financial Risk

The possibility of losing money on an investment or business venture, including the risk of losing some or all of the original investment.

Financial Leverage

The use of borrowed funds to increase the potential return of an investment, amplifying both potential gains and losses.