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)Facilitation of initial public offerings.
D)Minimal time and cost to organize.

Question

Quizplus · Accepted Answer

Forming a sole proprietorship requires minimal time and cost to organize, which is beneficial for an individual starting a small business with limited resources. Liability protection and legal flexibility are not significant benefits of a sole proprietorship, and facilitation of initial public offerings is not relevant as sole proprietorships are not designed for raising capital through stock markets.

If an Individual Forms a Sole Proprietorship, Which Nontax Factor