When compared to other forms of organization, an individual proprietorship has the advantage of (i) limited liability; (ii) lower taxes.

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Quizplus · Accepted Answer

An individually proprietorship does not have limited liability, which means that the owner is personally responsible for any debts or legal issues that the business may face. However, an individual proprietorship may have lower taxes as the business income is taxed as personal income for the owner.

When Compared to Other Forms of Organization, an Individual Proprietorship