Which of the following makes sole proprietorship a less desirable form of organization?
A) The creation of sole proprietorship is expensive and requires formal documentation.
B) A proprietorship's business activity may be more stable than a proprietor's willingness to remain actively involved in the business.
C) A proprietor may have to share his or her voice of control and responsibility for the business' success with the other acting members of the organization.
D) Sole proprietorships are the hardest forms of organization to create.
E) Sole proprietorships are subject to double taxation.

Question

Quizplus · Accepted Answer

The fact that a proprietorship's business activity may be more stable than a proprietor's willingness to remain actively involved in the business indicates that the sole proprietorship is a less desirable organizational form. Ownership of a sole proprietorship cannot be transferred.

Which of the Following Makes Sole Proprietorship a Less Desirable