Millie has a sole proprietorship that is her only source of income. Which of the following legal actions should she take to prevent the business from being ruined if she becomes incapacitated?

Question

Quizplus · Accepted Answer

Giving someone power of attorney would allow them to step in and manage the business in the event that Millie becomes incapacitated. This way, the business can continue to operate and generate income without risk of ruin. Choosing B or D would not be effective as a will only takes effect after death and sole proprietorships cannot be inherited, and telling heirs to sell would not prevent ruin in the event of incapacity. Choosing C would involve making significant changes to the business and bringing on a partner, which may not be necessary if a power of attorney can be appointed to manage the business temporarily.

Millie Has a Sole Proprietorship That Is Her Only Source