Gabriel Operates His Business as a Sole Proprietorship

question 69

True/False

Gabriel operates his business as a sole proprietorship. This year the business incurred an operating loss. The loss can be used to offset other business income he earned during the year.

---

Definitions:

Principals

A term referring to the main parties involved in a business or agreement.

Duty of Care

Duty of care is a legal obligation imposed on individuals to exercise a reasonable standard of care while performing any acts that could foreseeably harm others.

Negligence Action

A legal suit filed by an individual claiming harm due to another party's failure to exercise an appropriate level of care.

Forfeiture Rule

The principle that a criminal should not be permitted to profit from a crime.