Which One of the Following Statements Concerning a Sole Proprietorship

question 37

Multiple Choice

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

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

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Definitions:

Superego

In Freudian psychology, the part of the personality that represents internalized ideals, moral standards, and conscience, often in conflict with the id's desires.

Emphasized

Given special importance, value, or prominence to something.

Present

The period of time occurring now, or the current state or condition.

Future

A period of time that has yet to occur, often considered in terms of the potential for change or development.