Which of the Following Is NOT an Advantage of a Sole

Multiple Choice

Which of the following is NOT an advantage of a sole proprietorship?

A) It is easy and inexpensive to create.
B) It gives the owner 100 percent of the company and 100 percent of the profits and responsibility for the losses.
C) The income from the business is taxed at a rate lower than the owner's personal income tax rate.
D) The owner has complete authority to make decisions about the direction of the business.
E) There are no major reporting requirements such as those imposed on corporations.