Which of the Following Is True of a Sole Proprietorship

question 29

Multiple Choice

Which of the following is true of a sole proprietorship?

• A) A business operated under sole proprietorship cannot be transferred.
• B) Large businesses cannot be operated under sole proprietorship.
• C) A business operated under sole proprietorship should be owned by one or more people of the same family.
• D) Creditors can recover claims against the business from the sole proprietor's personal assets.

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Definitions:

Bystanders

Individuals who are present at an event or incident but do not take part.

Authority

The power or right to give orders, make decisions, and enforce obedience, often associated with a position of leadership or governance.

Obedience

The act of following orders or commands from someone in authority, often studied in social psychology.

Technique

A systematic procedure, method, or art applied by a particular task, performance, or craft.