Which One of the Following Statements Is Correct with Respect

question 81

Multiple Choice

Which one of the following statements is correct with respect to sole proprietorships?

• A)The sole proprietor has the same extent of liability as a shareholder.
• B)The sole proprietor must consult with the other owners before making any major decisions regarding the business.
• C)The sole proprietor is responsible for the torts committed by an employee that take place within the scope of employment.
• D)The sole proprietor need not adhere to any licensing and government regulations.
• E)The sole proprietor has limited liability.

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Definitions:

Cost Allocation

The process of identifying, accumulating, and assigning costs to cost objects, such as products, services, or departments.