A drawback of a sole proprietorship is: O a. the unlimited liability of the partners. Ob. conflicts with partners. O c. the complexity and cost to keep the records required by law. O d. its continued existence regardless of whether the owner lives or dies. O e. difficulty in obtaining financing.

A drawback of a sole proprietorship is: O a. the unlimited liability of the partners. Ob. conflicts with partners. O c. the complexity and cost to keep the records required by law. O d. its continued existence regardless of whether the owner lives or dies. O e. difficulty in obtaining financing.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

A drawback of a sole proprietorship is:
O a. the unlimited liability of the partners.
O b. conflicts with partners.
O c. the complexity and cost to keep the records required by law.
O d. its continued existence regardless of whether the owner lives or dies.
O e. difficulty in obtaining financing.

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One of the disadvantages associated with sole proprietorships is that: raising working capital is difficult. acquiring total ownership of the business's finances is not easy. O creating a sole proprietorship is a complicated process. obtaining licenses and permits is difficult. making autonomous business decisions is difficult.
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Which of the following is NOT the weaknesses of sole proprietorship? Manakah di antara berikut BUKAN kelemahan perniagaan milikan tunggal? Select one: A. Limited skills and capability /Keupayaan dan kemahiran terhad B. Do not have proper financial record /Tidak memiliki rekod kewangan yang baik C. Unlimited liability /Liabiliti tidak terhad D. Business information can be kept confidential /Maklumat perniagaan tidak perlu didedahkan
Assess the truth of this statement: One of the rules of debits and credits and account balances for a partnership is that assets increase as debits. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.
Which of the following is true about this statement: "In a sole proprietorship, the owner's personal assets are at risk if the business is not successful." Is this true? a) No, personal assets are protected by sole proprietorship laws. b) Yes, there is no protection for personal assets with sole proprietorships. c) No, personal assets are only at risk with corporations. d) Yes, this is true for all forms of business.
What advantages does a sole proprietor offer? What is a major drawback of this type of organization?
Which of the following is not a reason for the dissolution by the court? O a. Admission of new partner O b. Partner becomes insane O C. The business cannot be carried on except at a loss O d. Transfer whole interest of a partner is transferred to a third party

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