Is Sole Proprietorship Safe?

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Questions and Answers

Why might someone argue that sole proprietorship is not the safest type of business ownership?

  • Access to capital
  • Tax advantages
  • Limited liability protection (correct)
  • Ease of formation

Which factor contributes to the risk associated with sole proprietorship?

  • Share of profits with partners
  • Ease of decision-making
  • Personal and business assets are not separate (correct)
  • Access to government contracts

What characteristic of sole proprietorship makes it vulnerable in terms of business ownership safety?

  • Limited control
  • Tax complexity
  • Unlimited personal liability (correct)
  • Corporate governance

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