Question

part 1: main idea
what do many people consider to be the chief advantage of sole proprietorship?
the owner has unlimited liability.
the owner keeps all the profits.
the owner has unlimited startup funds.
the owner does not have to obey labor laws.
4
multiple choice 4 points
part 1: main idea
what is a business owned and managed by a single person called?
conglomerate
general partnership
limited partnership
sale proprietorship

Explanation:

• For the first question:
• In a sole - proprietorship, unlimited liability (the owner is personally responsible for all debts) is a disadvantage, so the first option is wrong.
• Sole - proprietors have limited startup funds as they rely mainly on personal savings or small - scale loans, so the third option is wrong.
• All businesses, including sole - proprietorships, must obey labor laws if they have employees, so the fourth option is wrong.
• The owner of a sole - proprietorship keeps all the profits (after taxes), which is a key advantage.
• For the second question:
• A conglomerate is a large corporation made up of multiple, unrelated businesses.
• A general partnership has two or more owners who share management and liability.
• A limited partnership has at least one general partner (with unlimited liability) and one or more limited partners (with limited liability).
• A sole - proprietorship is a business owned and managed by a single person.

Answer:

• First question: The owner keeps all the profits.
• Second question: sole proprietorship