Which of the following makes sole proprietorship a less desirable form of organization?
A) Creation of sole proprietorship is expensive and requires formal documentation.
B) Proprietorship's business activity may be more stable than the proprietor's willingness to remain actively involved in the business.
C) Proprietor may have to share his/her voice of control and responsibility for the business' success with the other acting members of the organization.
D) The business is always held liable for 100 percent of the debts.
E) The proprietorship is a victim of double taxation.

Question

Quizplus · Accepted Answer

The fact that the proprietorship's business activity may be more stable than the 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