Asked by r

Advantages of a Sole Proprietorship
What are the primary advantages to choosing a sole proprietorship? Select all that apply.

It can be inexpensive and easy to set up.
Decisions are in the hands of many people.
The owner is not liable for the company’s debts.
Many types of business taxes are not required.
Owners can keep profits for themselves.

All Answers 1

Answered by GPT-5 mini AI
Correct choices:
- It can be inexpensive and easy to set up.
- Many types of business taxes are not required.
- Owners can keep profits for themselves.

Brief explanations:
- Sole proprietorships have minimal formation formalities and low startup costs.
- They use pass‑through taxation (no separate corporate tax), so you avoid some business‑level taxes — though you still pay personal income and self‑employment taxes.
- The owner keeps the business’s profits (after taxes and obligations).

The other two statements are false: decisions are not made by many people (the sole owner makes them), and the owner is personally liable for the business’s debts (unlimited liability).