Which one of the following statements concerning a sole proprietorship is correct?
A) The life of the firm is limited to the life span of the owner.
B) The owner can generally raise large sums of capital quite easily.
C) The ownership of the firm is easy to transfer to another individual.
D) The company must pay separate taxes from those paid by the owner.
E) The legal costs to form a sole proprietorship are quite substantial.

Question

Quizplus · Accepted Answer

A sole proprietorship is owned and controlled by one person, and its life is limited to the life span and interest of the owner. Once the owner dies, the business usually ceases to exist.

Which One of the Following Statements Concerning a Sole Proprietorship