Question on: JAMB Economics - 2003
An advantage of the sole proprietorship over the partnership from of business organisation is that
A
its existence is limited by an individual's life span
B
it relies on the decision of friends to succeed
C
the possibility of conflict in management is virtually non-existent
D
it enjoys limited liability for debt in the event of failure
Ask EduPadi AI for a detailed answer
Correct Option: C
The correct answer is C. Here's why:
* **Sole Proprietorship vs. Partnership:** A sole proprietorship is owned and run by one person, while a partnership involves two or more people.
* **Advantages of Sole Proprietorship:** The key advantage listed in the options is the lack of potential conflict.
* **Elimination of other options:**
* **A:** This describes a disadvantage, not an advantage.
* **B:** Sole proprietorships do not rely on the decision of friends.
* **D:** Sole proprietors usually have unlimited liability, meaning they are personally responsible for business debts.
Add your answer
Please share this, thanks!
No responses