Which of the Following Statements Regarding Sole Proprietorships Is False

question 54

Multiple Choice

Which of the following statements regarding sole proprietorships is false?

• A) A sole proprietorship has no legal identity separate from that of its owner.
• B) Sole proprietorships are the most common form of business entity in the U.S.
• C) The cash flow generated by a sole proprietorship belongs to the owner.
• D) The assets and liabilities of a sole proprietorship are held in the name of the business, not the owner.

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Definitions:

Employee Involvement

The degree to which employees are encouraged to contribute ideas and participate in decision-making processes within their organization.

Team Norm

Behavioral expectations and standards that are established and shared among team members, guiding their interactions and work.

Verbal Aggression

The act of using spoken words to harm or attack someone either emotionally or psychologically.

High-performance Orientation

An organizational or team focus on achieving high levels of performance and excellence, often through setting challenging goals and standards.