Low start-up costs and tax benefits are advantages of sole proprietorships. True False

## Step 1<br />The problem is a statement about the advantages of sole proprietorships. Sole proprietorship is a type of business structure that is owned and run by one individual. <br /><br />## Step 2<br />The statement mentions two advantages of sole proprietorships: low start-up costs and tax benefits. <br /><br />## Step 3<br />Low start-up costs are indeed an advantage of sole proprietorships. This is because there is no need to share the initial investment with anyone else. The owner can start the business with the money they have or can borrow.<br /><br />## Step 4<br />Tax benefits are also an advantage of sole proprietorships. The owner can deduct business expenses from their personal income, which can reduce the overall tax burden.