Which of the Following a Characteristic of a Sole Proprietorship

question 53

Multiple Choice

Which of the following a characteristic of a sole proprietorship?

• A) The owner is personally responsible for the debts of the business even if the debts are more than the owner has invested in the business.
• B) It is a legal entity separate from its owner.
• C) Its income is taxed twice - once on the company's income tax return and again on the owner's individual income tax returns.
• D) It is the only organizational form appropriate for service businesses.

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Definitions:

Nondisclosure Agreement

A legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes but wishes to restrict access to or by third parties.

Usurious Agreement

A loan agreement that charges interest rates above the legal limit, considered exploitative.

Obstruct Justice

Deliberately impeding or interfering with the operation of the judicial system and its officials performing their duties.

Usury

The practice of charging more than the amount of interest allowed by law.