Which of the following statements is true of a sole proprietorship?

Question

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The life of a sole proprietorship is limited to the life of the owner. Once the owner dies or decides to sell or transfer the business, the sole proprietorship ceases to exist. A is incorrect because sole proprietorship is one of the least expensive types of businesses to start. C is incorrect because a sole proprietorship does not have the option of raising equity capital through public offerings. D is incorrect because the liability of a sole proprietor is unlimited, meaning the owner is personally responsible for all debts and legal obligations of the business.

Which of the Following Statements Is True of a Sole