Sole Proprietorship: Advantages and Disadvantages
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Questions and Answers

What is the profits tax rate of a sole proprietorship?

  • 10%
  • 25%
  • 20%
  • 15% (correct)
  • What is the main incentive for the owner of a sole proprietorship?

  • Having a big team
  • Enjoying all profits of the business (correct)
  • Higher salary
  • Job security
  • What type of liability does a sole proprietor bear?

  • No liability
  • Shared liability
  • Unlimited liability (correct)
  • Limited liability
  • Why is it difficult for a sole proprietorship to raise capital?

    <p>Due to its small business size</p> Signup and view all the answers

    Why does a sole proprietorship lack continuity?

    <p>It is not a legal entity</p> Signup and view all the answers

    What is the primary focus of z Ensemble 21 Sceneridia Pa + Pe?

    <p>Patent rights</p> Signup and view all the answers

    What is a disadvantage of a sole proprietorship compared to a large business?

    <p>It is difficult to compete with large businesses</p> Signup and view all the answers

    What is the result of a partnership?

    <p>Shared profits</p> Signup and view all the answers

    What is the characteristic of the Landes tax rate?

    <p>Lower than profits tax rate</p> Signup and view all the answers

    What is the purpose of Driven of Pane?

    <p>To find capital for expansion</p> Signup and view all the answers

    What is the outcome of a shared partnership?

    <p>Shared risks and profits</p> Signup and view all the answers

    What is the consequence if the cops disrupt the shades?

    <p>The company's detection of the creep is able to continue.</p> Signup and view all the answers

    What is the significance of Wiler scores in the context?

    <p>Measuring the capital of a sole proprietorship</p> Signup and view all the answers

    What can be inferred about the size of Lamy Masters?

    <p>It is a small company</p> Signup and view all the answers

    What does ' Pic Al La sfid + Salty Altind' likely refer to?

    <p>A company name</p> Signup and view all the answers

    What can be inferred about the 'shed' mentioned in the text?

    <p>It is a separate entity from some companies</p> Signup and view all the answers

    What is a characteristic of a partnership?

    <p>Unlimited liability for all partners except limited partners</p> Signup and view all the answers

    What happens when a partner makes a wrong decision in a partnership?

    <p>All partners are legally bound by the decision</p> Signup and view all the answers

    What is a disadvantage of a partnership?

    <p>Collective responsibility of faults</p> Signup and view all the answers

    What is a characteristic of a limited company?

    <p>Limited liability for shareholders</p> Signup and view all the answers

    What is a requirement for setting up a limited company?

    <p>Registration with the Companies Registry</p> Signup and view all the answers

    What is a difference between a partnership and a limited company?

    <p>A limited company is a legal entity, but a partnership is not</p> Signup and view all the answers

    What is a disadvantage of a limited company?

    <p>Higher profits tax rate</p> Signup and view all the answers

    Why may managers in limited companies have lower work incentives?

    <p>Because they are mere employees of the company</p> Signup and view all the answers

    What is a result of the complicated set-up procedure of limited companies?

    <p>Higher set-up cost</p> Signup and view all the answers

    What happens in limited companies when making decisions?

    <p>Decisions take a longer time</p> Signup and view all the answers

    What is an advantage of hiring professionals to run a limited company?

    <p>Productivity and efficiency increase</p> Signup and view all the answers

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