Which One of the Following Statements Is Correct with Respect

question 194

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) A sole proprietorship is a separate legal entity with one shareholder.
• D) The sole proprietor is a society under the Societies Act.
• E) A sole proprietorship involves unlimited liability for the proprietor.

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Definitions:

Stratified

Refers to a structure or material divided into layers, often used to describe layered deposits in geology or stratified societies in sociology.

Tropical Rain Forest

A hot, moist biome found near the Earth's equator characterized by high biodiversity and dense canopy layers.

Coniferous Forest

A terrestrial biome dominated by coniferous trees, which are evergreens that have needle-shaped leaves and produce cones.

Evergreen Trees

Perennial plants that retain their leaves throughout the year, as opposed to deciduous trees that shed their leaves seasonally.