Which of the following statements is the most accurate? Sole proprietorships:
A)Are well suited for people who want to own a business and share in its profits without taking an active role in management.
B)Are taxed at the owner's personal tax rate.
C)Is the least risky form of business ownership.
D)Must receive a state charter before they can legally conduct business.

Question

Quizplus · Accepted Answer

Sole proprietorships are taxed at the owner's personal tax rate, as the business is considered an extension of the owner. Option A is inaccurate as sole proprietors are typically fully involved in management. Option C is not necessarily true, as sole proprietorships do not provide any liability protection to the owner, putting personal assets at risk. Option D is not required for sole proprietorships.

Which of the Following Statements Is the Most Accurate? Sole