Which of the following statements about a sole trader is NOT true?
A)Most small businesses fail within the first five years of their establishment.
B)The death of the sole trader usually means the death of the business.
C)The degree of personal involvement by the sole trader can make the business difficult to sell.
D)Sole traders have limited liability for the debts of the business.

Question

Quizplus · Accepted Answer

Sole traders have unlimited liability, meaning they are personally responsible for all the debts of the business, which is a disadvantage of this business structure. Options A, B, and C are true statements about sole traders.

Which of the Following Statements About a Sole Trader Is