When the owner of a sole proprietorship dies, what becomes of the business?
A) The employees take over the business.
B) It ceases to exist unless the heirs take it over or sell it.
C) It is automatically auctioned to the highest bidder.
D) It ceases to exist, and no one may legally take it over.
E) It may continue existing but only under a new name.

Question

Quizplus · Accepted Answer

When the owner of a sole proprietorship dies, the business ceases to exist unless the heirs take it over or sell it. There is no legal entity separate from the owner, so the business cannot continue operating without the owner.

When the Owner of a Sole Proprietorship Dies, What Becomes