BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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most common
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least expensive to start
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owners are called members
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is taxed at the personal rate
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Detailed explanation-1: -Hence separate legal entity concept does not applies in the proprietorship business.
Detailed explanation-2: -A sole proprietorship, also known as a sole tradership, individual entrepreneurship or proprietorship, is a type of enterprise owned and run by one person and in which there is no legal distinction between the owner and the business entity. A sole trader does not necessarily work alone and may employ other people.
Detailed explanation-3: -The business owner, also known as a proprietor or a trader, conducts business using their legal name. They may also choose to do business using another name by registering a trade name with their local authority.
Detailed explanation-4: -Only one person is required to form a sole proprietorship. There are no legal conventions associated with this business form. The owner might need a license if he deals with certain products like alcohol or medicine.