BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following is not an advantage of being a sole trader?
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Easy to set up and run
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All the profits go to the owner
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Cannot be continued when the owner dies
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The owner has full control of the business
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Explanation:
Detailed explanation-1: -Disadvantages of sole trading include that: you have unlimited liability for debts as there’s no legal distinction between private and business assets. your capacity to raise capital is limited. all the responsibility for making day-to-day business decisions is yours.
Detailed explanation-2: -Answer and Explanation: Unlimited liability (option a) is not an advantage of a proprietorship. Unlimited liability is an undesirable feature for a proprietorship because it means that the owner of the enterprise is personally responsible for all debts.
Detailed explanation-3: -Answer: The correct answer is Limited Liability.
There is 1 question to complete.