Which one of the following statements concerning a sole proprietorship is correct?
A)The life of a sole proprietorship is potentially unlimited.
B)A sole proprietor can generally raise large sums of capital quite easily.
C)Transferring ownership of a sole proprietorship is easier than transferring ownership of a corporation.
D)A sole proprietorship is taxed the same as a C corporation.
E)It is easy to create a sole proprietorship.

Question

Quizplus · Accepted Answer

Sole proprietorships are the simplest and most common structure chosen to start a business. It is easy to form and offers complete managerial control to the owner. However, the owner is also personally liable for all financial obligations of the business.

Which One of the Following Statements Concerning a Sole Proprietorship