Which One of the Following Statements Is Correct with Respect

question 7

Multiple Choice

Which one of the following statements is correct with respect to sole proprietorships?

• A)The sole proprietor is restricted to service-type businesses.
• B)A sole proprietorship involves limited liability.
• C)The sole proprietor is a society under the Societies Act.
• D)A sole proprietorship involves unlimited liability for the proprietor.
• E)A sole proprietorship is a separate legal entity with one shareholder.

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Definitions:

Rescind

To revoke, cancel, or repeal a contract, agreement, or order.

Estimate of Value

An approximation of something's worth, determined through analysis or professional appraisal techniques.

Nondisclosure

The act of withholding information or not communicating certain information, often to protect confidentiality or trade secrets.

Misrepresentation

Providing false or misleading statements that induce someone into a contract that they would not have entered had they known the truth.