Which One of the Following Statements Concerning a Sole Proprietorship

question 8

Multiple Choice

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

• A) A sole proprietorship is the least common form of business ownership.
• B) The profits of a sole proprietorship are taxed twice.
• C) The owners of a sole proprietorship share profits as established by the partnership agreement.
• D) The owner of a sole proprietorship may be forced to sell his/her personal assets to pay company debts.
• E) A sole proprietorship is often structured as a limited liability company.

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Definitions:

Antihypertensive

A type of medication used to lower high blood pressure.

Antipyretic

A medication or substance used to reduce fever.

Sedative

A substance that induces sedation by reducing irritability or excitement.

Increased Intracranial Pressure

Increased Intracranial Pressure occurs when the pressure inside the skull rises, potentially leading to severe neurological damage due to the compression of brain tissues.