Sole proprietorships:

Question

Quizplus · Accepted Answer

Sole proprietorships do not have a built-in mechanism for perpetuity upon the death of the owner, unlike corporations. They are, however, not limited by time and can exist as long as the owner decides to keep the business running. Choices A and C are incorrect because in a sole proprietorship, there are no partners, and the business does not continue upon the death of the owner unless it is transferred or sold. Choice B is incorrect because sole proprietorships are not perpetual entities; they are closely tied to the life of the owner.

Sole Proprietorships