Which of the Following Is False Regarding a Sole Proprietorship

question 58

Multiple Choice

Which of the following is false regarding a sole proprietorship?

• A) A sole proprietorship requires few legal formalities.
• B) A sole proprietor has complete control of the management of the business.
• C) The sole proprietor keeps all the profits from the business.
• D) Profits are taxed as the personal income of the sole proprietor.
• E) A sole proprietor is not personally liable for obligations of the business.

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Definitions:

Molasses Solution

A liquid mixture made by dissolving molasses, which is a thick, sweet by-product of sugar processing, in water.

Selectively Permeable Membrane

A membrane that allows certain molecules or ions to pass through it by diffusion and occasionally specialized processes.

Distilled Water

Water that has been boiled into vapor and condensed back into liquid, removing impurities and minerals.

Mitochondria

Membrane-bound organelles found in the cytoplasm of almost all eukaryotic cells, essential for producing energy via the process of oxidative phosphorylation.