Which of the following is an advantage of a sole proprietorship?

A sole proprietorship is often recognized for its simplicity in establishment and management, which is why the chosen answer highlights an essential advantage of this business structure.

From a practical standpoint, a sole proprietorship requires minimal legal formalities or regulations to get started. This allows entrepreneurs to launch their business quickly without the complexities and costs associated with more intricate structures like partnerships or corporations. The owner has complete control over decision-making, allowing for swift adjustments and personal touches that larger enterprises might struggle to implement. Moreover, since there are no requirements for regular meetings or extensive record-keeping (like those necessary for corporations), managing the day-to-day operations of a sole proprietorship is typically more straightforward.

Other options present characteristics that do not align with the core advantages of sole proprietorships. Limited personal liability does not apply, as sole proprietors are personally liable for their business debts. The ability to raise significant capital often poses a challenge for sole proprietorships due to their structure, which limits access to resources typically available to corporations. Lastly, ownership in a sole proprietorship is not easily transferable; the business will often have to close or dissolve if the owner decides to sell or pass it on. Hence, simplicity and ease of management distinctly highlight the benefit of a sole