Transfer of ownership will affect the continuity of a
A)corporation.
B)sole proprietorship.
C)partnership.
D)sole proprietorship or partnership.

Question

Quizplus · Accepted Answer

The continuity of a sole proprietorship or partnership is affected by the transfer of ownership because these business structures are closely tied to their owners. In a sole proprietorship, the business and the owner are legally considered the same entity, so any change in ownership directly impacts the business's existence. Similarly, in a partnership, the departure or change of partners can lead to the dissolution of the existing partnership agreement, affecting the continuity of the business. Corporations, on the other hand, are separate legal entities from their owners (shareholders), so the transfer of ownership through the sale of shares does not affect their continuity.

Transfer of Ownership Will Affect the Continuity of a