Which of the following is true concerning a sole proprietorship?
A)It has limited liability for the owner.
B)The business survives the death of the owner.
C)It has only one owner.
D)Profits are taxed at the company tax rate.

Question

Quizplus · Accepted Answer

A sole proprietorship is a type of business that is owned and operated by one person. This means that there is only one owner. The owner of a sole proprietorship is also personally liable for any debts or legal issues that arise from the business, which means there is no limited liability protection. Additionally, profits from a sole proprietorship are not taxed at the company tax rate. Instead, they are taxed as personal income for the owner. Finally, when the owner dies, the business typically does not survive unless it is passed on to a successor or sold.

Which of the Following Is True Concerning a Sole Proprietorship