A common disadvantage of a sole proprietorship is a) that the owner must share profits with others. b) double taxation of earnings. c) the limited life of the business. d) difficulty starting the business.

A common disadvantage of a sole proprietorship is a) that the owner must share profits with others. b) double taxation of earnings. c) the limited life of the business. d) difficulty starting the business.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter4: Managing Income Taxes

Section: Chapter Questions

Problem 5LTAI

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Question

A common disadvantage of a sole proprietorship is

a) that the owner must share profits with others.

b) double taxation of earnings.

c) the limited life of the business.

d) difficulty starting the business.

Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

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