Which of the following is an advantage of a sole trader business?

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BlackTom AI · Accepted Answer

The question asks to identify an advantage of a sole trader business from the given options. 
Option a: Separate taxation. This is incorrect because a sole trader’s income is taxed as the owner’s personal income; there is no separate business taxation distinct from the owner's tax. 
Option b: Shared decision-making. This is not an advantage; sole traders make all decisions themselves, which means no shared decision-making unless you count external advisors, but the key point is that control is not shared.
Option c: Limited liability. This is false for a sole trader, as the owner has unlimited personal liability for business debts and obligations; the business and owner are not legally separate. 
Option d: Easy to establish and manage. This is correct because sole trader businesses are typically simple to set up with few legal formalities, and management is straightforward since one person makes the decisions and oversees operations. 
In sum, only option d describes a typical practical advantage of a sole trader structure, whereas the other options describe features that do not apply to sole traders or describe disadvantages.

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My home Progress Check

Which of the following is an advantage of a sole trader business?

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类似问题

What is a key feature of a sole trader business?

A sole proprietor has Blank ______ personal liability for all business debts and obligations.

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If Sally owns her own business and pays for its expenses on her credit card, she is most likely a(n) Blank ______ and is Blank ______ for all her credit card charges. BlackTom题目解析

Choose the correct answer from the below about sole trader

Which of the following is a strength of a sole proprietorship?

更多留学生实用工具

希望你的学习变得更简单

If Sally owns her own business and pays for its expenses on her credit card, she is most likely a(n) Blank and is Blank for all her credit card charges. BlackTom题目解析