Yoshi operates a shoe store as a sole proprietorship. However, he is in poor health and may be unable to continue running the business. If Yoshi becomes incapacitated, his business
A) automatically continues under new management as a sole proprietorship.
B) automatically converts into a public corporation with stock sold to interested investors.
C) ceases to exist unless sold or taken over by Yoshi's heirs.
D) becomes the property of the most senior employee who wishes to continue operating the firm.

Question

Quizplus · Accepted Answer

A sole proprietorship ceases to exist if the proprietor dies, retires, or becomes incapacitated, unless it is sold or taken over by the owner's heirs.

Yoshi Operates a Shoe Store as a Sole Proprietorship