Asked by
benjamin matray
on Nov 08, 2024
Verified
Which one of the following statements concerning a sole proprietorship is correct?
A) The life of the firm is limited to the life span of the owner.
B) The owner can generally raise large sums of capital quite easily.
C) The ownership of the firm is easy to transfer to another individual.
D) The company must pay separate taxes from those paid by the owner.
E) The legal costs to form a sole proprietorship are quite substantial.
Sole Proprietorship
A type of enterprise owned and run by one person, with no legal distinction between the owner and the business entity.
Life Span
The duration of time for which an organism, object, or service is expected to function or remain operational.
Taxes
Mandatory financial charges imposed by governments on individuals, corporations, and transactions to fund public expenditures.
- Recognize the advantages and disadvantages of sole proprietorships.
Verified Answer
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Learning Objectives
- Recognize the advantages and disadvantages of sole proprietorships.