Which is an advantage of a sole proprietorship?

Which is an advantage of a sole proprietorship?

• A. Limited liability
• B. Total control of the business
• C. Shared decision making
• D. High startup costs

Answer: (B)

Total control of the business is the best advantage because a sole proprietor makes all decisions themselves and doesn’t need to rely on partners or a board. This unity of command lets the owner act quickly, adapt to changing conditions, and implement plans without negotiation, which is especially helpful in farming where market and weather factors can demand fast responses. Keep in mind that this advantage comes with tradeoffs: there is no limited liability, so personal assets are at risk if the business owes money or faces lawsuits. Shared decision making isn’t possible because there’s no partner or multiple owners, and startup costs aren’t inherently high—in many cases they’re fairly straightforward and inexpensive to set up.

Total control of the business is the best advantage because a sole proprietor makes all decisions themselves and doesn’t need to rely on partners or a board. This unity of command lets the owner act quickly, adapt to changing conditions, and implement plans without negotiation, which is especially helpful in farming where market and weather factors can demand fast responses.

Keep in mind that this advantage comes with tradeoffs: there is no limited liability, so personal assets are at risk if the business owes money or faces lawsuits. Shared decision making isn’t possible because there’s no partner or multiple owners, and startup costs aren’t inherently high—in many cases they’re fairly straightforward and inexpensive to set up.