Why is starting a business as a sole proprietorship easier than starting as a corporation?
A) There are very few legal requirements as a sole proprietorship.
B) Tax rates are lower.
C) There are fewer financial liabilities.
D) It is easier to solicit for investors.
E) There are fewer demands on the owner's time.
Answer: A
Explanation: A sole proprietorship is easy to establish and requires far less paperwork than other structures. Otherwise, just by starting business operations without creating a partnership or a corporation, you legally establish yourself as a sole proprietor.
You might also like to view...
The policies and processes for managing the integrity and security of data in a firm are referred to as data governance
Indicate whether the statement is true or false
To protect partnerships and minimize misunderstandings among partners, all terms of a partnership should be spelled out in writing
Indicate whether the statement is true or false