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If a Business Is Run as a Sole Proprietorship

Question 65

Multiple Choice

If a business is run as a sole proprietorship,


A) it is not allowed to borrow money
B) the financial liability of the owner is limited to the amount invested in the business
C) all of the profits earned in the business flow to the proprietor
D) at least two persons are involved in all management decisions
E) it cannot hire nonfamily members to work in the business

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