Often single-owner proprietorships seem more profitable than they really are. The reason for this is that

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Single-owner proprietorships can fail to consider the opportunity cost of the labor provided by the owner, which can make the business appear more profitable than it really is. This is because the owner's labor is often not included as an expense in the financial records, which can inflate the business's net income.

Often Single-Owner Proprietorships Seem More Profitable Than They Really Are