The sole proprietorship form of business ________.
A)enjoys an indefinite life
B)has limited liability for the business's debts
C)is a common form of organization for small businesses
D)is a separate taxable entity from its owner

Question

Quizplus · Accepted Answer

A sole proprietorship is a common form of organization for small businesses as it is easy to set up and operate, and there are no formal legal requirements such as filing with the state. Additionally, the owner is personally liable for the business's debts, which means there is no limited liability for the owner, and the business is not a separate taxable entity from its owner. While a sole proprietorship can continue indefinitely, it is dependent on the owner's continued involvement and can be dissolved upon the owner's death or retirement.

The Sole Proprietorship Form of Business ________