Which of the following are benefits enjoyed by sole proprietorships? Select the two correct answers.(2 points)

Responses

easy access to credit
easy access to credit

limited liability
limited liability

unlimited liability
unlimited liability

earning goes directly to the owner
earning goes directly to the owner

control of decision-making

1 answer

The two correct benefits enjoyed by sole proprietorships are:

  1. Earning goes directly to the owner - In a sole proprietorship, the profits generated by the business are directly earned by the owner, without having to share them with partners or shareholders.

  2. Control of decision-making - Sole proprietors have complete control over decision-making in their business, allowing them to make quick and independent choices without needing approval from others.

The other options, "easy access to credit," "limited liability," and "unlimited liability," do not represent benefits typical of sole proprietorships, particularly "limited liability," as sole proprietors have unlimited liability, meaning they are personally responsible for all business debts.