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When the owner of a sole proprietorship dies, the business does not dissolve-it is automatically transferred to family members or other heirs.
Sole Proprietorship
A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.
Dissolve
The process by which a solid, liquid, or gas forms a solution in a solvent, becoming evenly dispersed and losing its distinct form.
Automatically Transferred
A process where ownership or rights shift from one party to another without the need for manual intervention, often by operation of law or contractual agreement.
- Learn about the defining traits and legal outcomes of operating a business entity as a sole proprietorship.
- Understand the implications of business form selection on liability and tax obligations.
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Learning Objectives
- Learn about the defining traits and legal outcomes of operating a business entity as a sole proprietorship.
- Understand the implications of business form selection on liability and tax obligations.
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