Which of the following is true about a sole proprietorship?
A)A sole proprietorship is a legal entity.
B)A sole proprietorship cannot sue or be sued.
C)A sole proprietorship as form of business can be transferred to someone else.
D)A sole proprietorship has a life of its own apart from its owner.

Question

Quizplus · Accepted Answer

A sole proprietorship is not a legal entity.It cannot sue or be sued.Instead,creditors must sue the owner.The sole proprietor-in his own name-must sue those who harm the business.

Which of the Following Is True About a Sole Proprietorship