A business with no partners and no board of directors to report to is typically considered to be independent and positioned to act quickly when required.Which of the following is also typical of this form of business?
A) its limited failure expectancy
B) its limited life expectancy
C) the diversity of profit-sharing plans
D) the complexity involved in its formation

Question

Quizplus · Accepted Answer

Sole proprietorships, which are businesses owned and operated by a single individual with no partners or board of directors, typically have a limited life expectancy. This is because the business is closely tied to the life of the owner, and it may cease to exist or undergo significant changes if the owner retires, passes away, or decides to sell the business.

A Business with No Partners and No Board of Directors