Question 30
Business OrganisationsAn advantage of the sole proprietorship over the partnership form of business organisation is that
- A.its existence is limited by an individual's life span
- B.it relies on the decision of friends to succeed
- C.the possibility of conflict in management is virtually non-existent
- D.it enjoys limited liability for debt in the event of failure
Show the answer and explanation
Answer: C (the possibility of conflict in management is virtually non-existent)
Explanation
A sole proprietor makes all decisions alone, so there are no quarrels between partners over management.