Question

Antonia runs her own business as a cabinetmaker. What benefit and what drawback does her sole proprietorship entail?. . Control over decision making, but high costs. . Shared liability, but shared profits. . Total control, but total liability. . More investment, but double taxation

Answer 1

The answer to the question is the third option, "Total control, but total liability". The decisions made regarding the business in sole proprietorship is mainly based on the thinking of one owner, in this case Antonia. In similar manner, all the liabilities are also hers.