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 (B)</p> Signup and view all the answers

Why does a sole proprietorship lack continuity?

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

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

<p>Patent rights (A)</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 (D)</p> Signup and view all the answers

What is the result of a partnership?

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

What is the characteristic of the Landes tax rate?

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

What is the purpose of Driven of Pane?

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

What is the outcome of a shared partnership?

<p>Shared risks and profits (A)</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. (D)</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 (C)</p> Signup and view all the answers

What can be inferred about the size of Lamy Masters?

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

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

<p>A company name (D)</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 (C)</p> Signup and view all the answers

What is a characteristic of a partnership?

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

What is a disadvantage of a partnership?

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

What is a characteristic of a limited company?

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

What is a requirement for setting up a limited company?

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

What is a disadvantage of a limited company?

<p>Higher profits tax rate (A)</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 (C)</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 (A)</p> Signup and view all the answers

What happens in limited companies when making decisions?

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

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

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

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