Joe Jackson operates a sole proprietorship,but he is in poor health and may be unable to continue running the business.If Joe becomes incapacitated,his business:
A)Automatically continues under new management as a sole proprietorship.
B)Automatically converts into a public corporation with stock sold to interested investors.
C)Ceases to exist unless sold or taken over by Joe's heirs.
D)Becomes the property of the most senior employee who wishes to continue operating the firm.

Question

Quizplus · Accepted Answer

A sole proprietorship is tied to the owner and if the owner becomes incapacitated, the business would cease to exist unless it is sold or taken over by someone else. It would not automatically continue under new management or convert into a public corporation. Additionally, the property of a business would not automatically transfer to the most senior employee.

Joe Jackson Operates a Sole Proprietorship,but He Is in Poor