When a sole proprietor dies:
A)The sole proprietor's heirs have the option of taking over the business.
B)The business is sold to a larger corporation.
C)The company continues to function as it always has.
D)The company always closes down.

Question

Quizplus · Accepted Answer

When a sole proprietor dies, the business does not automatically close down. Instead, the owner's heirs have the option of taking over the business and continuing to operate it. However, it is important to note that the heirs will also inherit any debts or obligations of the business. If the heirs do not wish to take over the business, they may choose to sell it or liquidate it.

When a Sole Proprietor Dies