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

A sole proprietorship offers the significant advantage of direct control of decision-making. The owner has the authority to make all operational decisions without needing to consult with partners or investors. This allows for quick, flexible responses to changing circumstances or market demands, as there is no need to reach consensus with others. This level of control can be particularly beneficial for entrepreneurs who want to implement their vision without compromise, leading to potentially more efficient management and operations.

In contrast, other forms of business structure may require input from multiple stakeholders or involve more complex decision-making processes. While limited liability is a common advantage in corporations and limited liability companies, sole proprietors are personally liable for all business debts. Access to extensive funding and the ability to attract diverse investors are generally more aligned with larger entities such as corporations, where multiple shares and interests can be sold to generate capital.