A single proprietorship is a form of business organization which
A) has unlimited access to money capital.
B) has a single owner but has directors who are responsible for the firm's debts.
C) allows easy transferability of ownership by the trading of shares.
D) has limited liability.
E) has one owner- manager who is personally responsible for the firm's actions and debts.

Question

Quizplus · Accepted Answer

A single proprietorship has only one owner-manager who has complete control and responsibility for the business, including any debts or legal issues that may arise. The owner's personal assets are not separate from the business, meaning that they are fully liable for any actions or debts incurred by the business. This structure does not allow for shareholders or a board of directors, and therefore does not offer limited liability or easy transferability of ownership.

A Single Proprietorship Is a Form of Business Organization Which