Which of the following is an advantage of a sole proprietorship? Group of answer choices

a. It has limited liability for the debts incurred by the business.

b. It is unaffected by the death or withdrawal of its owner.

c. It is hard to dissolve. It is heavily regulated by the government.

d. It is easy and inexpensive to form.

Question

Bucky

Business

Today, 13:08

Which of the following is an advantage of a sole proprietorship? Group of answer choices

a. It has limited liability for the debts incurred by the business.

b. It is unaffected by the death or withdrawal of its owner.

c. It is hard to dissolve. It is heavily regulated by the government.

d. It is easy and inexpensive to form.

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Answers (1)

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Layne Potts · Answer 1

d. It is easy and inexpensive to form.

Explanation:

Sole proprietorship is a company formed by an individual it is run by that individual. It generally do not require much of funds, although since there is only one reporting person thus, he is liable for every profit or the loss.

There stands an unlimited liability on such person and he can not withdraw from such liability.

Further if that person dies then the entire business is shut down, as he is the sole performer and manager of the business.

Accordingly, option d is correct.