If an individual forms a sole proprietorship, which nontax factor will be of greatest benefit to the sole proprietor?
A) Liability protection.
B) Legal flexibility in defining rights and responsibilities of owners.
C) Facilitates initial public offerings.
D) Minimal time and cost to organize.

Question

Quizplus · Accepted Answer

While a sole proprietorship can be organized with minimal time and cost, sole proprietorships don't provide a shield for the individual owner. Legal flexibility to define the rights and responsibilities of owners and the ability to go public are irrelevant because they are not characteristics that pertain to sole proprietorships.

If an Individual Forms a Sole Proprietorship, Which Nontax Factor