Millie Has a Sole Proprietorship That Is Her Only Source

question 63

Multiple Choice

Millie has a sole proprietorship that is her only source of income.What legal action should she take to prevent the business from being ruined if she becomes incapacitated?

• A)Give someone who is competent power of attorney to continue the business.
• B)State in her will what she would like to do with the company.
• C)Find a partner and change the legal organisation of the company.
• D)Tell her heirs to sell as she cannot prevent ruin with a sole proprietorship.

---

Definitions:

Schedule C

A financial document utilized by individual business owners to declare their business's earnings or deficits.

Deductible Expenditure

An expense that can be subtracted from gross income to reduce taxable income, often related to business or specified personal expenses.

Travel Expense Deduction

Tax deductions allowed for expenses incurred while traveling for business purposes.

Sightseeing

The activity of visiting places of interest or natural beauty, especially during travel or holidays.