Which of the following is an advantage of sole proprietor ownership?
A) direct control of the business
B) keeping 50 percent of the profits
C) limited liability
D) better terms from suppliers

Question

Quizplus · Accepted Answer

Sole proprietors have direct control over their business, which allows them to make decisions quickly and easily without having to consult with others. This can be a major advantage, especially when compared to businesses that are owned by multiple people or have a more complex management structure. Keeping 50 percent of profits (B) is not necessarily an advantage of sole proprietor ownership, as it assumes that there is a joint venture or partnership involved. Limited liability (C) is actually a disadvantage of sole proprietor ownership, as the owner is personally liable for any debts or obligations incurred by the business. Better terms from suppliers (D) may be possible for larger businesses, but not necessarily for a sole proprietorship.

Which of the Following Is an Advantage of Sole Proprietor