Which of the following is not true of sole traders?
A) They are one-owner businesses.
B) They are not normally reporting entities.
C) They are separate legal entities.
D) They usually have limited funds at their disposal.

Question

Quizplus · Accepted Answer

Sole traders are not separate legal entities, unlike companies. They are owned and run by one individual, who is personally liable for all the business's debts and legal obligations. Sole traders are commonly small businesses with limited funds at their disposal. They are not required to file any separate tax returns or financial statements, but their business income and expenses are reported on their personal tax returns.

Which of the Following Is Not True of Sole Traders