Which of the Following Is a Disadvantage of a Sole

Multiple Choice

Which of the following is a disadvantage of a sole proprietorship?

A) A sole proprietorship is difficult to form because of the extensive paperwork and costs involved.
B) The owner of a sole proprietorship has to manage the business in accordance with the directions of the board of directors.
C) A sole proprietorship is subjected to double taxation of its earnings.
D) A sole proprietorship lacks permanence because it is just an extension of its owners.