Which of the following a characteristic of a sole proprietorship?
A) The owner is personally responsible for the debts of the business even if the debts are more than the owner has invested in the business.
B) It is a legal entity separate from its owner.
C) Its income is taxed twice - once on the company's income tax return and again on the owner's individual income tax returns.
D) It is the only organizational form appropriate for service businesses.
Correct Answer:
Verified
Q22: Which of the following statements about financial
Q28: Which of the following expressions of the
Q33: Managerial accounting reports prepared for internal use
Q36: Accounting systems:
A) are summarized in publicly published
Q36: Public corporations are businesses:
A)owned by two or
Q37: Internal users of financial data include:
A)investors.
B)creditors.
C)management.
D)regulatory authorities.
Q39: The owner(s)of a business are taxed on
Q40: A legal document called a stock certificate
Q48: Operating activities include:
A)interest paid on a bank
Q54: The separate entity assumption assumes:
A)the financial reports
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