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:

Competitors

Other businesses or individuals that offer similar products or services, vying for the same customer base or market share.

Technical Feasibility

Evaluation of whether a proposed project or system can be implemented with current technology and resources.

Micro-replication Technology

A manufacturing technique that precisely replicates microscale structures and patterns for various applications, including optical and adhesive products.

Development

The stage of the new-product development process that turns the idea on paper into a prototype.