Which of the Following Statements Regarding Sole Proprietorships Is False

question 54

Multiple Choice

Which of the following statements regarding sole proprietorships is false?

• A) A sole proprietorship has no legal identity separate from that of its owner.
• B) Sole proprietorships are the most common form of business entity in the U.S.
• C) The cash flow generated by a sole proprietorship belongs to the owner.
• D) The assets and liabilities of a sole proprietorship are held in the name of the business, not the owner.

Understand the impact of partners’ actions on the partnership's liability and continuity.

Recognize how intellectual property is treated within a partnership context.

Understand the implications of a partner’s death, retirement, or exit from the partnership.

Differentiate between the types of partnerships (e.g., general, limited) and their respective management and liability structures.