A sole proprietorship is a form of business ownership in which:
A)a business is considered a legal entity that is separate from its owners.
B)a single owner actively manages a company.
C)two or more people act as co-owners of a company.
D)the owners of a business are offered limited liability and flexible tax treatment.

Question

Quizplus · Accepted Answer

A sole proprietorship is a form of business where the business is owned and operated by a single individual, who has total control over the company's assets and affairs. The owner is also personally liable for all of the company's debts and obligations. Therefore, option B is the correct answer. A is incorrect because a sole proprietorship is not a separate legal entity. C is incorrect since it describes a partnership, and D is incorrect because sole proprietors have unlimited liability and do not have the benefit of flexible tax treatment.

A Sole Proprietorship Is a Form of Business Ownership in Which