Sole proprietorships have all of the following advantages EXCEPT _____.
A)unlimited life
B)ease of formation
C)profits subject only to a single tax
D)ease of liquidation

Question

Quizplus · Accepted Answer

Sole proprietorships do not have an unlimited life; they are closely tied to the life of the owner. When the owner dies, the business does not continue unless it is taken over or sold. The other options (ease of formation, profits subject only to a single tax, and ease of liquidation) are indeed advantages of sole proprietorships.

Sole Proprietorships Have All of the Following Advantages EXCEPT _____