Which of the Following Statements Is True of a Sole

question 114

Multiple Choice

Which of the following statements is true of a sole proprietorship?

• A)A sole proprietorship joins two or more individuals as co-owners.
• B)The sole proprietor is personally liable for the liabilities of the business.
• C)A sole proprietorship is taxed separately from the owner.
• D)A sole proprietorship has to pay business income taxes.

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Definitions:

Client's Interest

The welfare or benefit of clients that professionals, such as lawyers or financial advisors, are obligated to prioritize in their service.

Professional Relationship

A relationship between individuals in a workplace or business environment, based on professional respect and collaboration.

Legal Matter

An issue or situation that falls under the jurisdiction of law and requires legal processes for resolution.

Lawyer Recognition

The acknowledgment or accolade given to a lawyer or law firm for their professional expertise, service quality, or achievements in the legal field.