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Advantages of proprietorships include all of the following except______

a. Owner is his or her own boss
b. Ease of formation
c. Owner has unlimited personal liability
d. No formal prerequisites to begin operations

1 Answer

3 votes

Final answer:

Advantages of proprietorships include the owner having full control, ease of startup, and no formal requirements to start, but unlike what's suggested in the query, having unlimited personal liability is actually a disadvantage.

Step-by-step explanation:

The advantages of proprietorships include numerous factors such as the owner being his or her own boss, ease of formation, and no formal prerequisites to begin operations, which make it highly appealing for individual business ventures. However, one of the primary disadvantages, which is incorrectly listed as an advantage in the question, is that the owner has unlimited personal liability. This means that in the event of bankruptcy or lawsuits, the owner's personal assets can be at risk to satisfy business debts and liabilities.

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