In the Context of Legal Forms of Business, Identify a True

In the context of legal forms of business, identify a true statement about sole proprietorship firms.

A) These firms can have multiple founders with equal stakes so long as a single individual is considered to be the owner.
B) Laws governing business practices do not recognize other equity investors, which limits the growth potential of such firms.
C) Because of the limited nature of the growth potential of such firms, any profits they make are exempt from federal taxation.
D) Many communities discourage the formation of these firms because their operations are difficult to regulate.