Final answer:
A sole proprietor has flexibility in the pricing of services or goods and in scheduling their vacation. They do not have flexibility in how the business is taxed and cannot sell stock, as this is an option for corporations.
Step-by-step explanation:
A sole proprietorship offers a business owner significant flexibility in making decisions about their business operations. In regards to the question, a sole proprietor has flexibility in:
Pricing of services or goods sold: As the sole decision-maker, the proprproprietor can set prices strategically to compete in the market or to achieve desired profit margins.
When to schedule a vacation: Being their own boss, the sole proprietor can determine their own work hours and vacation time without having to seek approval from others.
Conversely, a sole proprietor cannot decide 'how the business is taxed' as this is governed by tax laws, and a sole proprietorship is not capable of selling stock, which is an option only available to corporations.