To Close a Sole Proprietorship, the Owner Must

question 111

Multiple Choice

To close a sole proprietorship, the owner must

• A) notify the secretary of state.
• B) pay creditors.
• C) publish an out-of-business statement in the newspaper.
• D) have all licenses and permits revoked.
• E) do none of the above.

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Definitions:

Beneficiary

An individual or entity entitled to receive benefits or assets under a legal instrument, such as a will or insurance policy.

Bilateral Contract

A contract in which both parties make promises.

Consideration

In contract law, the mutual promise to exchange benefits and detriments between parties.

Premiums

The amount paid for insurance coverage or the payment above the nominal value of a security when issued.