Question

One major advantage of organizing a business as a sole proprietorship is

that:
A. it is easy to quickly raise large sums of capital.
B. risk and liability are divided among many people.
C. the business has an unlimited life span.
D. it is fairly simple to get the business started.

Answer 1

The major advantage of organizing a business as a sole proprietorship is that it is fairly simple to get the business started, without the complex formalities associated with other types of business structures.

Step-by-step explanation:

One major advantage of organizing a business as a sole proprietorship is that it is fairly simple to get the business started. Unlike corporations or partnerships, a sole proprietorship is straightforward to establish without the need for formal agreements, and there are minimal government regulations to contend with. Additionally, the business and the owner are considered a single entity, which means that all profits flow directly to the owner, who also bears all the liability and responsibility for the business's debts and obligations.

Despite its benefits, one must also consider the inherent risks involved with a sole proprietorship. The owner's personal assets are at risk if the business fails because there is unlimited liability. This means that in case of bankruptcy or lawsuits, the owner could lose personal property.

Thus, the correct answer to the given question would be:

D. it is fairly simple to get the business started.

Answer 2

D. it is fairly simple to get the business started.