Question

Which of the following is an advantage of a sole proprietorship? A. It is easy to expand if it succeeds B. It faces few government rules C. It is easy to get financing to start one D. It has the lowest federal income taxes

Answer 1

A sole proprietorship firm is a firm which can be opened by an individual and the the owner of the firm has an unlimited liability towards the firm that means the owner enjoys unlimited profit of the firm as well as the loss of the firm.

The advantage of the sole proprietor firm is that it can be set up very easily with low or very few government rules. So the correct answer is B.