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.

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Definitions:

Common Law

A set of laws that are not formally written down, but are instead determined by historical court outcomes.

Trespass to Land

An unauthorized or unlawful entry onto land that is owned or possessed by another person.

Exclusive Possession

A legal right allowing an individual or entity sole use and control over a property or asset, without interference from others.

Defendant's Actions

Refers to the behaviors or conduct by the defendant in a legal case that are central to the lawsuit's claims.