Manuel owns and operates a tow truck company by himself. His busiest times are usually holidays and long weekends, when lots of people are traveling and lots of cars are on the road
Working these times means Manuel is experiencing which drawback of being a sole proprietorship?
A) having unlimited financial liability, which means his personal possessions are at risk
B) having to specialize in a variety of tasks
C) having limited financial resources and few fringe benefits
D) having management problems
E) not being able to sell or pass along his business
Answer: C
Explanation: C) Being a sole proprietorship means Manuel does not have the fringe benefit of being able to take vacation time when other people typically are off work.
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