Asked by Aiden Kravitz on May 21, 2024
Verified
Which of the following is not a characteristic of sole proprietorship?
A) Ease of organization ion
B) Simplicity of control
C) Limited availability of capital
D) Relatively free from regulation
E) Limited liability
Sole Proprietorship
An unincorporated business firm owned by one person.
Liability
Liability refers to legal financial debts or obligations that arise during the course of business operations, which an entity is responsible for settling.
Capital
Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.
- Differentiate between various forms of business ownership and their characteristics.
Verified Answer
JH
Jaimy HerreraMay 22, 2024
Final Answer :
E
Explanation :
Unlike corporations, sole proprietorships have unlimited personal liability, meaning that the owner is personally responsible for all debts and liabilities of the business. Therefore, limited liability is not a characteristic of sole proprietorship.
Learning Objectives
- Differentiate between various forms of business ownership and their characteristics.