Which One of the Following Statements Concerning a Sole Proprietorship

question 48

Multiple Choice

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

• A) A sole proprietorship is designed to protect the personal assets of the owner.
• B) The profits of a sole proprietorship are subject to double taxation.
• C) The owner of a sole proprietorship is personally responsible for all of the company's debts.
• D) There are very few sole proprietorships remaining in the U.S. today.
• E) A sole proprietorship is structured the same as a limited liability company.

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Definitions:

Associative

Relating to or involving the formation of associations or connections between ideas, experiences, or memories.

Team

A group of individuals working together towards a common goal, often characterized by cooperative and coordinated efforts.

Parallel

In psychology, parallel play refers to a stage of development in children where they play alongside other children without directly interacting with them, a concept often used to describe certain social behaviors.