A Sole Proprietorship Is a Business Form in Which

question 79

Multiple Choice

A sole proprietorship is a business form in which

• A) the owner is protected against failure of the firm to pay its debt.
• B) shareholders are the rightful owners of the company.
• C) a government-issued charter has established its legal existence.
• D) the owner enjoys unlimited liability and unlimited rights to all the profits.
• E) the owner is prohibited from selling shares of stock.

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Definitions:

Revolutionary War

A war fought from 1775 to 1783 in which the American colonies successfully gained independence from Great Britain, becoming the United States of America.

Shays's Rebellion

A revolt carried out by American farmers in 1786-1787 against the execution of tax collections and debt judgments by state and local officials.

Thomas Jefferson

The third President of the United States (1801–1809), author of the Declaration of Independence, and a founding father known for his promotion of the ideals of republicanism in the United States.

Massachusetts

A state in the northeastern United States, significant for being one of the original thirteen colonies and a site of early European settlement, and later, important historical events such as the Boston Tea Party and the American Revolution.