Which of the following statements is true of sole proprietorships?

Question

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Sole proprietorships are the simplest and most common structure chosen to start a business. They are very easy to establish and have the least amount of regulatory burden, which gives them the most freedom from government regulations compared to other business structures. Unlike corporations, sole proprietors are not considered separate entities from their businesses, meaning they do not enjoy limited liability, and they are not exempt from paying taxes. Dissolution of a sole proprietorship is also relatively straightforward, typically requiring less formal action than dissolving other types of business entities.

Which of the Following Statements Is True of Sole Proprietorships