Which of the following statements is false regarding a sole proprietorship?
A)A sole proprietorship requires few legal formalities.
B)A sole proprietor has complete control of the management of the business.
C)The sole proprietor keeps all the profits from the business.
D)A sole proprietor is not personally liable for obligations of the business.
E)Profits are taxed as the personal income of the sole proprietor.

Question

Quizplus · Accepted Answer

A)A sole proprietor is personally liable for any losses or obligations associated with
the business.
B)A sole proprietor is personally liable for any losses or obligations associated with the business.
C)A sole proprietor is personally liable for any losses or obligations associated with the business.
D)A sole proprietor is personally liable for any losses or obligations associated with the business.
E)A sole proprietor is personally liable for any losses or obligations associated with the business.

Which of the Following Statements Is False Regarding a Sole