Which of the following statements is NOT true regarding the advantages and disadvantages of a sole proprietorship?
A) A sole proprietorship can be created without formal agreements or state filings.
B) The proprietor reports income from the business on a personal tax return.
C) The proprietor alone bears liability for the losses.
D) It is usually easy for sole proprietorships to raise capital.

Question

Quizplus · Accepted Answer

It is usually difficult for sole proprietorships to raise capital as they are seen as risky investments by lenders and investors due to the unlimited liability of the proprietor.

Which of the Following Statements Is NOT True Regarding the Advantages