Which of the following is not an advantage of a proprietorship?
A) Inexpensive to form
B) Not regulated heavily
C) Unlimited liability
D) Taxed like an individual

Question

Quizplus · Accepted Answer

Unlimited liability is a disadvantage of a proprietorship, not an advantage. It means that the owner is personally responsible for all the business's debts and obligations, which can put their personal assets at risk. The other options - A, B, and D - are advantages of a proprietorship, including low formation costs, minimal regulation, and being taxed like an individual.

Which of the Following Is Not an Advantage of a Proprietorship