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Sara Wishes to Start a Sole Proprietorship Venture as a Figure

Question 69

Multiple Choice

Sara wishes to start a sole proprietorship venture as a figure skating coach and consultant.She will book ice and charge fees for students she teaches how to skate and also for guidance on proper nutrition and off-ice exercises.Which of the following applies to Sara's venture?


A) Sara personally assumes all gains or losses of the business.
B) Sara personally assumes no profits since the business files its own tax return.
C) Sara receives tax-free fringe benefits.
D) Sara assumes no profits since the business is a separate legal entity.

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