Which of the following is an advantage of a sole proprietorship?
A) A sole proprietor is personally obligated for the debt of the proprietorship.
B) A sole proprietorship is not taxed as an organization.
C) In a sole proprietorship, liability is shared with many partners.
D) A sole proprietorship is the least expensive business organization to create.
E) A sole proprietorship's business activity may be more stable than the proprietor's willingness to remain actively involved in the business.

Question

Quizplus · Accepted Answer

A sole proprietorship is the easiest and least expensive business organization to create. In essence, the proprietor obtains whatever business licenses are necessary and begins operations. Legally, no formal documentation is needed.

Which of the Following Is an Advantage of a Sole