Which of the Following Is a Characteristic of a Sole

question 30

Multiple Choice

Which of the following is a characteristic of a sole proprietorship?

• A) Ownership interests are nontransferable.
• B) Profits are taxed as income to the organization and again as income to owners.
• C) The lifetime of the organization is unlimited.
• D) Liability of the owners is limited to loss of capital contribution.

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Definitions:

American Rule

A legal principle stating that each party in a lawsuit is responsible for paying their own attorney's fees, unless specified otherwise by law.

Public Policy

Public policy refers to the system of laws, regulatory measures, courses of action, and funding priorities concerning a given topic promulgated by a governmental entity or its representatives.

Oral Assignments

Assignments or agreements made verbally rather than in writing; depending on the context, they may not be legally binding.

Notice of Assignment

A formal notification that a contract or property has been legally transferred from one party to another.