Which of the following statements is incorrect regarding sole proprietorships?
A) There is one owner.
B) Sole proprietor is in full control.
C) Business ends at the owner's death or loss of interest in the business.
D) Liquidity of the investment is high.
E) Money must be raised by the sole proprietor.

Question

Quizplus · Accepted Answer

Liquidity of the investment is not necessarily high in a sole proprietorship. The owner of the business owns all of the assets and liabilities of the business, which can make it difficult to sell or convert the business into cash quickly.

Which of the Following Statements Is Incorrect Regarding Sole Proprietorships