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.

Learn the impact of depreciation on financial statements and cash flow.

Recognize various depreciation methods and their application to different asset types.

Comprehend the treatment of ordinary maintenance versus improvement expenditures.

Understand the accounting treatment of leased assets and their presentation on the balance sheet.

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Definitions:

Task-Oriented Mindset

A focus on completing tasks and achieving goals, often prioritizing work efficiency over other considerations.

Flex Time

A work schedule policy allowing employees to choose their working hours within agreed limits.

Senior Management Positions

High-level roles within an organization, responsible for strategic decision-making and leadership.

Career Advancement

The process of moving forward in one's professional life, often involving promotions, increased responsibilities, or more significant achievements.