A sole proprietorship:
A)must be owned by an individual.
B)provides basic liability protection for the owner.
C)must use the cash method of accounting.
D)can pay the owner a salary.

Question

Quizplus · Accepted Answer

A sole proprietorship must be owned by an individual, distinguishing it from other business structures that can have multiple owners or be owned by other entities. Sole proprietorships do not inherently provide liability protection for the owner, do not have a requirement to use the cash method of accounting, and cannot pay the owner a salary because the owner's income is directly tied to the business's profits.

A Sole Proprietorship