Which of the following is an advantage of a sole proprietorship?
A) Sole proprietors are attractive candidates for investor capital.
B) The sole proprietor has limited liability for all claims against the business.
C) Capital can be raised through the sale of stock up to the amount authorized in the corporate charter.
D) The income from the business is taxed only once at the owner's personal income tax rate.
E) It is easier for sole proprietors to raise debt capital.

Question

Quizplus · Accepted Answer

Sole proprietorships benefit from a single taxation system, where the income from the business is taxed only once, using the owner's personal income tax rate. This contrasts with corporations, where income can be taxed both at the corporate level and again when distributed as dividends to shareholders.

Which of the Following Is an Advantage of a Sole