Which of the Following Statements Is Correct

question 63

Multiple Choice

Which of the following statements is correct?

• A) Sole proprietorships are easy to start.
• B) If the sole proprietorship gets sued, the owner is not liable.
• C) It is relatively easy for sole proprietorships to raise money.
• D) Profits from the sole proprietorship are subject to double taxation.

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Definitions:

Robbery

The act of taking someone's property through force or intimidation.

False Pretenses

The act of misrepresenting a fact or situation to deceive or manipulate another person, often to secure unlawful gain.

Objective Fault

A legal standard that determines liability based on failure to meet an objective level of care, regardless of the defendant's intent or knowledge.

Vicarious Liability

A legal principle holding a party responsible for the actions of another, typically applied when an employer is held liable for the actions of an employee.