To close a sole proprietorship, the owner must
A) notify the secretary of state.
B) pay creditors.
C) publish an out-of-business statement in the newspaper.
D) have all licenses and permits revoked.
E) do none of the above.

Question

Quizplus · Accepted Answer

Closing a sole proprietorship involves paying off all outstanding debts and obligations to creditors. There may also be legal and tax requirements to fulfill, but the primary financial responsibility is to satisfy all debts. Notification to the secretary of state or publication in a newspaper may not be required, and licenses and permits will likely expire naturally if not renewed.

To Close a Sole Proprietorship, the Owner Must