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Questions and Answers
Why might someone argue that sole proprietorship is not the safest type of business ownership?
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?
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?
What characteristic of sole proprietorship makes it vulnerable in terms of business ownership safety?
- Limited control
- Tax complexity
- Unlimited personal liability (correct)
- Corporate governance
