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

question 83

Multiple Choice

What is the chief disadvantage of the sole proprietorship as a form of business organisation 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:

Unreasonable Searches

A term referring to searches conducted by law enforcement without a valid warrant or without an applicable exception to the warrant requirement, violating the Fourth Amendment.

Establishment Clause

One of two provisions in the First Amendment of the U.S. Constitution that protect citizens’ freedom of religion. It prohibits (i) the establishment of a national religion by Congress and (ii) the preference of one religion over another or of religion over nonreligious philosophies in general.

First Amendment

The part of the United States Constitution that protects freedoms of speech, religion, press, assembly, and petition.

Constitution

The system of fundamental principles according to which a nation, state, corporation, or the like, is governed.