Which one of the following statements concerning a sole proprietorship is correct?
A) A sole proprietorship is designed to protect the personal assets of the owner.
B) The profits of a sole proprietorship are subject to double taxation.
C) The owner of a sole proprietorship is personally responsible for all of the company's debts.
D) There are very few sole proprietorships remaining in the U.S. today.
E) A sole proprietorship is structured the same as a limited liability company.

Question

Quizplus · Accepted Answer

The owner of a sole proprietorship is personally responsible for all the company's debts. This means that the owner's personal assets can be used to repay any business debts.

Which One of the Following Statements Concerning a Sole Proprietorship