When the owner of a sole proprietorship dies, what becomes of the business?
A)The employees take over the business.
B)It ceases to exist unless the heirs take it over or sell it.
C)It is automatically auctioned to the highest bidder.
D)It ceases to exist, and no one may legally take it over.
E)It may continue existing but only under a new name.Samantha's Dilemma

Question

Quizplus · Accepted Answer

When the owner of a sole proprietorship dies, the business ceases to exist unless the heirs take it over or sell it. There is no automatic transfer of ownership or management, and the business cannot continue operating without the legal entity of the owner.

When the Owner of a Sole Proprietorship Dies, What Becomes