Sole proprietorships offer several advantages, which include all of the following except ____.
A)they are easy and inexpensive to create
B)they give the owner complete authority
C)dividends are paid to owners
D)the income from the business is taxed only once, at the owner's personal income tax rate
E)there are no major reporting requirements, as with a corporation

Question

Quizplus · Accepted Answer

Sole proprietorships do not pay dividends because dividends are typically distributed by corporations to their shareholders. In a sole proprietorship, the owner directly earns the business's profits, which are then taxed as personal income.

Sole Proprietorships Offer Several Advantages, Which Include All of the Following