Which One of the Following Statements Concerning a Sole Proprietorship

question 1

Multiple Choice

Which one of the following statements concerning a sole proprietorship is correct?

• A)A sole proprietorship is difficult to form.
• B)The business profits are taxed twice at the federal level.
• C)The business profits are taxed separately from the personal income of the owner.
• D)The owner may be forced to sell his/her personal assets to pay company debts.
• E)A sole proprietorship has an unlimited life.

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Definitions:

Anaphylactic Reaction

A severe, potentially life-threatening allergic reaction that can occur rapidly and affect numerous body systems.

Epithelial Tissue

The type of animal tissue that covers body surfaces, lines body cavities, and forms glands; also called epithelium.