Which One of the Following Statements Concerning a Sole Proprietorship

question 52

Multiple Choice

Which one of the following statements concerning a sole proprietorship is correct?

• A) The life of a sole proprietorship is limited.
• B) A sole proprietor can generally raise large sums of capital quite easily.
• C) Transferring ownership of a sole proprietorship is easier than transferring ownership of a corporation.
• D) A sole proprietorship is taxed the same as a C corporation.
• E) A sole proprietorship is the most regulated form of organization.

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Definitions:

Likelihood

The probability or chance of an event occurring.

Contingency

An uncertain future event that could affect financial performance or outcomes.

Employee Earnings Record

A cumulative record of each employee’s gross earnings, deductions, and net pay during the year.

Withholding Tax Table

A chart used to determine the amount of tax to be withheld from an employee's paycheck based on earnings and allowances.