Ellayne manages a busy law practice as a sole practitioner.What is a major risk of Ellayne's choice of business form?
A) complications arising from the inability to contract for employees
B) adverse affects of illness or incapacity
C) complications arising from the hiring and firing of employees
D) adverse affects of taxation of profits

Question

Quizplus · Accepted Answer

As a sole practitioner, Ellayne's business operations heavily depend on her ability to work. Illness or incapacity could significantly disrupt the business, posing a major risk. Other options like contracting for employees, managing them, or taxation issues are manageable aspects and not unique risks to a sole practitioner.

Ellayne Manages a Busy Law Practice as a Sole Practitioner