One of the major advantages of a sole proprietorship is
A) that the owner has limited liability.
B) that stock in the proprietorship can be easily transferred.
C) that it is exempt from many tax rules that would otherwise apply when employees are hired by the firm.
D) low operating costs.

Question

Quizplus · Accepted Answer

One of the major advantages of a sole proprietorship is low operating costs. This is because the business is owned and operated by one individual, which eliminates the need for additional employees or management. However, the owner does not have limited liability, and transferring ownership can be difficult. Additionally, the proprietorship is not exempt from tax rules.

One of the Major Advantages of a Sole Proprietorship Is