When the owner of a sole trader dies, what becomes of the business?
A) The employees take over the business.
B) It ceases to exist unless the heirs take it over or sell it.
C) It is automatically auctioned to the highest bidder.
D) It ceases to exist, and no one may legally take it over.
E) It may continue existing but only under a new name.

Question

Quizplus · Accepted Answer

When the owner of a sole trader dies, the business ceases to exist unless the heirs take it over or sell it. There is no legal requirement for the employees to take over the business, nor does it automatically get auctioned off to the highest bidder. Therefore, the only option for the business to continue is for the heirs to take over, which is not guaranteed.

When the Owner of a Sole Trader Dies, What Becomes