Identify the Correct Statement About Sole Proprietorship

question 14

Multiple Choice

Identify the correct statement about sole proprietorship.

• A) The owner shares responsibility with the agents and employees.
• B) It may be operated under an assumed or trade name.
• C) Employees of the business are not the personal employees of the owner.
• D) The salaries paid to the employees are not deductible in determining taxable income.

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Definitions:

Inferiority

A feeling of being lower in status or quality compared to others, often leading to decreased self-esteem.

Self-Esteem

One’s evaluation of one’s own worth.

Clearly Defined Limits

Explicitly stated boundaries or rules designed to establish expected behaviors and procedures within a given context.

Controlling

Exerting power or influence over others in an overbearing or manipulative manner.