Identify the correct statement about a sole proprietorship.
A) The owner shares responsibility with the agents and employees.
B) It may be operated under an assumed or trade name.
C) Employees of the business are not the personal employees of the owner.
D) The salaries paid to the employees are not deductible in determining taxable income.

Question

Quizplus · Accepted Answer

A sole proprietorship is a business operated by a person as his own personal property. The person operating the business need not use his or her own name as the name of the business; it may be operated under an assumed or trade name. Such a trade name would have to be registered with the proper state or local official, however.

Identify the Correct Statement About a Sole Proprietorship