Ease of formation and a relative freedom from government control are some of the advantages of as sole proprietorship

ENTREPRENEURIAL PROCESS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	True
B	False
C	Either A or B
D	None of the above

Explanation:

Detailed explanation-1: -Answer and Explanation: It is correct that b) the owner of a sole proprietorship is personally responsible for all the company’s debts. A sole proprietorship allows an individual to do business but does not distinguish the business from the business owner.

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: -The most significant disadvantage of the sole proprietorship is no protection from liability. Every business liability is a personal liability since there is no legal entity concept. So, while the owners have the freedom to control and make decisions independently, they are also solely liable for the business.

There is 1 question to complete.

ENTREPRENEURSHIP

INTRODUCTION TO ENTREPRENEURSHIP

ENTREPRENEURIAL PROCESS