Answer:
the answer is c, this was previously answered and was correct
Step-by-step explanation:
One major advantage of organizing a business as a sole proprietorship is that the owner has total control over the company.
What is sole proprietorship?
A sole proprietorship is an unincorporated business that is also known as a sole trader or a proprietorship with only one owner who is responsible for paying personal income tax on the company's profits. Since it's not essential to register a distinct business or trade name, many sole owners operate under their own identities. Due to a lack of governmental oversight, a sole proprietorship is the most straightforward type of business to start or dissolve. As a result, consultants, sole proprietors, and other freelancers frequently operate these kinds of enterprises. The majority of small firms begin as sole proprietorships, grow, and ultimately convert to a corporation or limited liability entity.
The quickest and easiest way to start a firm with just one owner is through a sole proprietorship. As soon as you start operating your business, you become a sole proprietor. It is the best approach for new self-employed individuals to get started because it doesn't need submitting federal or state forms and has little regulatory constraints.
In that no separate legal organization is created, a single proprietorship differs significantly from a corporation (corp. ), limited liability company (LLC), or limited liability partnership (LLP). As a result, the proprietor of a sole proprietorship is not immune from the obligations imposed by the business.
The key advantages of a sole proprietorship are the pass-through tax benefit, the simplicity of formation, and the minimal startup and ongoing costs.
A sole proprietorship has several drawbacks, including unrestricted liability that extends beyond the business to the individual and the challenge of acquiring capital backing, particularly through recognized methods such issuing shares and securing bank loans or lines of credit.
Therefore, business owners who operate as sole proprietors start out as an entity with limitless liability. As the company expands, they frequently switch to a limited liability entity that does provide some level of protection to the owners.