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Which One of the Following Statements Concerning a Sole Proprietorship

Question 3

Multiple Choice

Which one of the following statements concerning a sole proprietorship is correct?


A) A sole proprietorship is difficult to form.
B) The business profits are taxed twice at the federal level.
C) The business profits are taxed separately from the personal income of the owner.
D) The owner may be forced to sell his/her personal assets to pay company debts.
E) A sole proprietorship has an unlimited life.

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