What is the weakness of a proprietorship?
8. Proprietorships are the most widely used form although they are generally the smallest organizations in. terms of assets. True. 9. A weakness for a proprietorship is that owner's liability for debts of the firm is unlimited.
What is agency cost?
Agency costs are the tangible and intangible expenses borne by shareholders because of the actual or. potential self-serving actions of managers; and agency costs can include explicit, out-of-pocket expenses. True. 46.
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