Ask Question
BusinessBusiness
30 September, 05:50

What is the chief disadvantage of the sole proprietorship as a form of business organization when compared to the corporate form?

+2
Answers (1)
  1. 30 September, 06:20
    0
    The correct answer is unlimited liability for personal assets.

    Explanation:

    Both terms can be described as follows:

    Sole Proprietorship: This type of business has only one owner of the firm and he is totally responsible for any liability or loss. Liability can be recovered by acquiring the personal assets of the owner.

    Corporation: This type of business can have a number of shareholders and each shareholder has limited liability for any loss in the company. in the case of any loss, the money he invested in the company can be acquired and there is no threat to his personal assets.

    Hence, the chief disadvantage of a sole proprietorship is unlimited liability for personal assets.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What is the chief disadvantage of the sole proprietorship as a form of business organization when compared to the corporate form? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Besides the actual mortgage payment, which also factors into the monthly payment on a home?
Answers (2)
What is one way you can get singled out as a leader by using body language?
Answers (1)
Conduct online research to discover how to start and maintain a good credit rating throughout your life. Write a 500-word report describing your plan to become a responsible, low-risk borrower with an excellent credit score.
Answers (1)
Finance in an organization Corporate finance is concerned with the different aspects of a business's financial management. The chief financial officer (CFO) is the top financial position in the organization and oversees several tasks.
Answers (1)
Unemployment benefits are a. paid to individuals the entire time they are unemployed regardless of how long they are unemployed. b. not paid to individuals with assets valued over $200,000. c.
Answers (1)
New Questions in Business
Now that we have explored the problem, let's turn to the solution is an example of an internal preview. a. Trueb. False
Answers (1)
Suppose that while melissa was on the coast, she also spent two days sightseeing the national parks in the area.
Answers (1)
On a large construction project, the price of dry wall is $.40 per square foot and spraying the dry wall with textured plaster is $.45 per square yard. how much must the builder pay for sprayed dry wall that is 100 square yards?
Answers (1)
Which statement describes the equity‑efficiency trade‑off? There is always a more equitable outcome that is also more efficient. Government intervention can increase efficiency in a market. The least efficient economic outcome is the fairest outcome.
Answers (1)
You would like to buy shares of Nokia (NOK). The current bid and ask quotes are $20.13 and $20.15, respectively. You place a market buy-order for 300 shares that executes at these quoted prices. How much money did it cost to buy these shares?
Answers (1)
Home » Business » What is the chief disadvantage of the sole proprietorship as a form of business organization when compared to the corporate form?
Sign Up Forgot Password?