The Most Significant Limitation on Use of a Sole Proprietorship

question 16

Multiple Choice

The most significant limitation on use of a sole proprietorship is that

• A)the sole proprietor alone must do all the work in the sole proprietorship business.
• B)it is simple to terminate.
• C)the sole proprietor must obtain a business licence.
• D)the sole proprietor must register a business name.
• E)the sole proprietor has unlimited personal liability for all obligations of the sole proprietorship business.

---

Definitions:

Statute

A written law passed by a legislative body at the federal or state level, setting forth regulations, provisions, and penalties.

Common Law

A legal system based on custom and court rulings rather than written laws, primarily in English-speaking countries.

Cell Phone Usage

The rules or guidelines governing the use of mobile phones in various contexts, such as driving or in certain public spaces.

Purposes of Law

The objectives that laws are designed to achieve, including maintaining social order, protecting individual rights, resolving disputes, and promoting social justice.