Asked by jayla houser on Jun 12, 2024
Verified
All of the following are disadvantages of the proprietorship form of business except
A) the entire burden of running the company falls on one person's shoulder's.
B) there are fewer legal complications than any other form of business.
C) the owner may be sued for everything she has if the business is sued.
D) it is a lot harder for one person,rather than two or more people,to raise capital.
Proprietorship
A type of business enterprise owned and run by one individual with no legal distinction between the owner and the business.
Legal Complications
refer to issues or challenges that arise in the application, interpretation, or enforcement of laws, often leading to disputes or legal actions.
Capital
Financial assets or the financial value of assets, such as funds held in deposit accounts and the funds invested in any kind of asset.
- Differentiate among business structures such as corporations, partnerships, and sole proprietorships, along with their distinct features.
Verified Answer
SF
Surala FriedmanJun 15, 2024
Final Answer :
B
Explanation :
The statement, "there are fewer legal complications than any other form of business," is false. In fact, a sole proprietorship can be subject to many legal requirements and regulations, such as obtaining licenses and permits, registering with the government, and complying with tax laws. Therefore, option B is not a disadvantage of the proprietorship form of business.
Learning Objectives
- Differentiate among business structures such as corporations, partnerships, and sole proprietorships, along with their distinct features.