Sole proprietorship - SS1 Commerce Past Questions and Answers - page 1
What is the main characteristic of a sole proprietorship?
Multiple owners
Limited liability
Complete control by the owner
Where does the capital for a sole proprietorship typically come from?
Personal savings
Venture capitalists
Government grants
What does unlimited liability mean in the context of a sole proprietorship?
The owner has limited liability for the business's debts
The owner is personally responsible for all the business's debts
The business is responsible for the owner's debts
What are some advantages of a sole proprietorship?
Limited liability and tax benefits
Complete control and tax benefits
Access to public funding and limited liability
What is one of the disadvantages of a sole proprietorship?
Limited control and tax burdens
Unlimited liability and limited financial resources
Access to public funding and expertise
Define sole proprietorship in simple terms.
What is the main advantage of a sole proprietorship?