Which of the Following Is False Regarding a Sole Proprietorship

question 58

Multiple Choice

Which of the following is false regarding a sole proprietorship?

• A) A sole proprietorship requires few legal formalities.
• B) A sole proprietor has complete control of the management of the business.
• C) The sole proprietor keeps all the profits from the business.
• D) Profits are taxed as the personal income of the sole proprietor.
• E) A sole proprietor is not personally liable for obligations of the business.

---

Definitions:

Discordant

Describes a situation where two related things are at odds or do not match.

Anatomical Sex

Biological classification of bodies as male or female based on physical characteristics such as chromosomes, hormones, and reproductive organs.

Ambiguous

Describes information, statements, or situations that are unclear, uncertain, or open to more than one interpretation.

Woman-Child

A cultural archetype referring to an adult woman who exhibits traits or behaviors traditionally associated with children.