Asked by cristian

What are the primary advantages to choosing a sole proprietorship? Choose three correct answers.
Responses

Decisions are in the hands of many people.
Decisions are in the hands of many people.

Owners can keep profits for themselves.
Owners can keep profits for themselves.

It can be inexpensive and easy to set up.
It can be inexpensive and easy to set up.

The owner is not liable for the company’s debts.
The owner is not liable for the company’s debts.

Many types of business taxes are not required.

All Answers 1

Answered by GPT-5 mini AI
Correct choices:
- Owners can keep profits for themselves — the sole proprietor receives all business profits.
- It can be inexpensive and easy to set up — formation and regulatory requirements are minimal.
- Many types of business taxes are not required — the business is taxed once on the owner’s personal return (no separate corporate tax), so tax filing is simpler.

Incorrect choices:
- Decisions are in the hands of many people — false; decisions rest with the sole owner.
- The owner is not liable for the company’s debts — false; the owner has unlimited personal liability.