Asked by
Allison Ramsey
on Nov 21, 2024
Verified
Which of the following statements is false regarding a sole proprietorship?
A) A sole proprietorship requires few legal formalities.
B) A sole proprietor has complete control of the management of the business.
C) The sole proprietor keeps all the profits from the business.
D) Profits are taxed as the personal income of the sole proprietor.
E) A sole proprietor is not personally liable for obligations of the business.
Sole Proprietorship
A type of enterprise that is owned and operated by one person, with no legal distinction between the owner and the business entity.
- Comprehend the distinctions in law regarding liability, taxes, and territorial authority among disparate corporate structures.
- Gain an understanding of the key concepts and differences distinguishing sole proprietorships, partnerships, LLCs, corporations, and cooperatives.
Verified Answer
SP
Learning Objectives
- Comprehend the distinctions in law regarding liability, taxes, and territorial authority among disparate corporate structures.
- Gain an understanding of the key concepts and differences distinguishing sole proprietorships, partnerships, LLCs, corporations, and cooperatives.