Question
Which of the following are benefits enjoyed by sole proprietorships? Select the two correct answers.(1 point)
Responses
easy access to credit
easy access to credit
unlimited liability
unlimited liability
control of decision-making
control of decision-making
limited liability
limited liability
earning goes directly to the owner
Responses
easy access to credit
easy access to credit
unlimited liability
unlimited liability
control of decision-making
control of decision-making
limited liability
limited liability
earning goes directly to the owner
Answers
GPT-4o mini
The two correct answers regarding the benefits enjoyed by sole proprietorships are:
1. **Control of decision-making** - Sole proprietors have full control over business decisions without needing to consult partners or shareholders.
2. **Earning goes directly to the owner** - All profits generated by the business go directly to the sole proprietor, allowing for direct financial benefit.
The other options, such as "easy access to credit," "unlimited liability," and "limited liability," do not reflect benefits typically associated with sole proprietorships. In fact, sole proprietorships face unlimited liability, meaning the owner is personally responsible for all debts and obligations of the business.
1. **Control of decision-making** - Sole proprietors have full control over business decisions without needing to consult partners or shareholders.
2. **Earning goes directly to the owner** - All profits generated by the business go directly to the sole proprietor, allowing for direct financial benefit.
The other options, such as "easy access to credit," "unlimited liability," and "limited liability," do not reflect benefits typically associated with sole proprietorships. In fact, sole proprietorships face unlimited liability, meaning the owner is personally responsible for all debts and obligations of the business.