A major problem associated with the sole proprietorship form of retail organization may be _____.
A)management succession
B)unionization
C)double taxation
D)duality of objectives between management and ownership

Question

Quizplus · Accepted Answer

Sole proprietorships have a significant challenge with management succession because the business is owned and managed by a single individual. In the event that the proprietor is unable to continue managing the business due to retirement, illness, or death, it is not easy to transfer ownership and management to another person. This can lead to the end of the business or significant difficulty in maintaining operations. Other options such as partnerships or corporations can provide more flexibility in management succession.

A Major Problem Associated with the Sole Proprietorship Form of Retail