In a sole proprietorship, there is a legal distinction between contributed capital and earned capital.

Name: In a sole proprietorship, there is a legal distinction between contributed capital and earned capital.
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In a sole proprietorship, there is no legal distinction between contributed capital and earned capital. All capital, whether contributed by the owner or earned by the business, is considered the same in terms of legal ownership and liability.

In a Sole Proprietorship, There Is a Legal Distinction Between