When the Owner of a Sole Proprietorship Dies, What Becomes

question 99

Multiple Choice

When the owner of a sole proprietorship dies, what becomes of the business?

• A) The employees take over the business.
• B) It ceases to exist unless the heirs take it over or sell it.
• C) It is automatically auctioned to the highest bidder.
• D) It ceases to exist, and no one may legally take it over.
• E) It may continue existing but only under a new name.

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Definitions:

Defense Mechanism

Psychological strategies unconsciously used to protect oneself from anxiety by denying and distorting reality.

Reaction Formation

Psychological defense mechanism in which a person forms an opposite emotional or behavioral reaction to the way he or she really feels to keep those true feelings hidden from self and others.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

External Locus of Control

A belief that one's successes or failures result from external factors beyond one's control.