The fact that the sole proprietor is 100% personally exposed to the liabilities incurred by the business is the key advantage of the Sole Proprietorship,beyond the simplicity of the commencement of the operation.

Question

Quizplus · Accepted Answer

This statement is incorrect. The fact that the sole proprietor is 100% personally exposed to the liabilities incurred by the business is actually a disadvantage of the sole proprietorship, rather than an advantage. The key advantage of a sole proprietorship is the simplicity of starting and operating the business.

The Fact That the Sole Proprietor Is 100% Personally Exposed