Thomas wants to make money, so he starts his own business as a sole proprietor. He likes this form of business because
A) he will get to keep all of the profits the business makes.
B) profit is guaranteed since he will be the only owner.
C) it will provide a steady income for him.
D) he has to split the profits with only one other person.
E) he has to pay small dividends to the other owners.

Question

Quizplus · Accepted Answer

As a sole proprietor, Thomas will be the only owner of the business and will get to keep all of the profits. This makes it an attractive option for individuals who want to make money without having to split it with other owners. However, profit is not guaranteed and it may not provide a steady income if the business is not successful. Option B is incorrect as profit is never guaranteed in any form of business. Option C is incorrect as the income will depend on the success of the business. Option D and E are incorrect as they assume the presence of other owners, which is not the case in a sole proprietorship.

Thomas Wants to Make Money, So He Starts His Own