Which of the Following Statements Is TRUE of a Sole

question 160

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:

Companies

Organizations engaged in commercial, industrial, or professional activities.

European Union

A political and economic union of 27 European countries that are committed to regional integration, characterized by its single market allowing for the free movement of goods, services, people, and capital.

Nation-By-Nation Basis

An approach that treats each country or national market as unique, developing tailored strategies, products, and marketing to address local preferences and regulations.

Economic Crises

Periods of severe economic downturns marked by significant declines in income and employment across various sectors.