Question
Read each question and choose the best answer.
Which advantage of a sole proprietorship could also be a disadvantage?
A. A sole proprietor has full control.
B. A sole proprietor can easily start a business.
C. A sole proprietor is the sole receiver of profit.
D. A sole proprietor has to follow relatively few regulations.
Which advantage of a sole proprietorship could also be a disadvantage?
A. A sole proprietor has full control.
B. A sole proprietor can easily start a business.
C. A sole proprietor is the sole receiver of profit.
D. A sole proprietor has to follow relatively few regulations.
Answers
GPT-4o mini
The best answer is: **C. A sole proprietor is the sole receiver of profit.**
While being the sole receiver of profit can be seen as an advantage, it can also be a disadvantage because it means that the sole proprietor bears all the financial risk and consequences of losses. If the business does poorly, they alone are responsible for any financial setbacks.
While being the sole receiver of profit can be seen as an advantage, it can also be a disadvantage because it means that the sole proprietor bears all the financial risk and consequences of losses. If the business does poorly, they alone are responsible for any financial setbacks.