Mehdi Operates a Sole Proprietorship,but He Is in Poor Health

question 164

Multiple Choice

Mehdi operates a sole proprietorship,but he is in poor health and may be unable to continue running the business.If Mehdi 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)becomes the property of the most senior employee who wishes to continue operating the firm.
• D)ceases to exist unless sold or taken over by Mehdi's heirs.

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Definitions:

Comprehensive Income

The total change in equity for a business enterprise during a period from transactions and other events from non-owner sources.

Cash Income

Income received in the form of money as opposed to in-kind benefits or services, often considered for taxation and reporting purposes.

Official Poverty Line

A government-determined threshold of income used to measure and identify the population that lives in poverty, often adjusted for inflation and family size.

Department of Agriculture

A government agency responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food.