Which One of the Following Statements Is Correct with Respect

question 170

Multiple Choice

Which one of the following statements is correct with respect to sole proprietorships?

• A) A sole proprietorship is a separate legal entity with one shareholder.
• B) A sole proprietorship involves limited liability.
• C) The sole proprietor is a society under the Societies Act.
• D) A sole proprietorship involves unlimited liability for the proprietor.
• E) The sole proprietor is restricted to service type businesses.

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Definitions:

Global

Relating to or encompassing the whole world; worldwide in scope or application.

Stable

Refers to something that is firm, steady, and not likely to move or change, often used in the context of conditions or situations.

Bipolar Disorder

A mental disorder marked by alternating periods of elation (mania) and depression.

Depression

A mental health disorder characterized by persistently low mood and a lack of interest in activities, often accompanied by various physical symptoms.