Which of the following are benefits enjoyed by sole proprietorships? Select the two correct answers. (1 point)
earning goes directly to the owner
limited liability
easy access to credit
unlimited liability
control of decision-making
The correct answers are:
1. Earning goes directly to the owner.
2. Control of decision-making.
Sole proprietorships enjoy the benefit of having all the earnings go directly to the owner, as they have sole ownership of the business. They also have complete control over decision-making processes, as they are the sole decision-maker in the business. Please note that sole proprietorships do not have limited liability, as the owner is personally responsible for any debts or liabilities of the business, leading to unlimited liability. Additionally, easy access to credit may not be a benefit of sole proprietorships, as they may face challenges in obtaining credit due to their individual liability.