Question

what is an advantage of an informal business structure?
○ a. no personal asset protection for the owners
○ b. unlimited liability
○ c. stocks may be sold for profit
○ d. owner(s) get all of the profit

Explanation:

• Option a: No personal asset protection is a disadvantage, not an advantage.
• Option b: Unlimited liability is a negative aspect (e.g., in sole - proprietorships which are informal in some ways, owners are personally liable for debts).
• Option c: Informal business structures (like sole - proprietorships or general partnerships) usually do not sell stocks.
• Option d: In informal business structures (e.g., sole - proprietorship where there is one owner or a general partnership where profit - sharing is among partners as per agreement), the owners (or partners) get the profit (after expenses).

Answer:

d. Owner(s) get all of the profit