Joe Jackson Operates a Sole Proprietorship, but He Is in Poor

question 85

Multiple Choice

Joe Jackson operates a sole proprietorship, but he is in poor health and may be unable to continue running the business. If Joe becomes incapacitated, his business:

• A) automatically continues under new management as a sole proprietorship.
• B) automatically converts into a public corporation with stock sold to interested investors.
• C) ceases to exist unless sold or taken over by Joe's heirs.
• D) becomes the property of the most senior employee who wishes to continue operating the firm.

---

Definitions:

Larva

The juvenile form of an animal that undergoes metamorphosis, such as an insect or amphibian, typically different in form from the adult.

Develop

To undergo a process of growth, evolution, or unfoldment, becoming more mature, advanced, or elaborate.

Kinetic Energy

The energy that an object possesses due to its motion.

Temperature Rises

Temperature rises refer to the increase in the thermal energy of a system, which can result in changes in physical state, reaction rates, and physical properties.