INTRODUCTION TO ENTREPRENEURSHIP
ENTREPRENEURIAL PROCESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A sole proprietorship is a business where all of the following are true, EXCEPT that ____
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profits are only taxed once as the proprietor’s income
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the owner has complete control over decision making
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the proprietor can sell stock to increase its capital resources
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the proprietor is liable for losses to the extent of his or her personal assets
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Explanation:
Detailed explanation-1: -Answer and Explanation: It is correct that b) the owner of a sole proprietorship is personally responsible for all the company’s debts. A sole proprietorship allows an individual to do business but does not distinguish the business from the business owner.
Detailed explanation-2: -A sole proprietorship is an unincorporated business with only one owner who pays personal income tax on profits earned. Sole proprietorships are easy to establish and dismantle due to a lack of government involvement, making them popular with small business owners and contractors.
Detailed explanation-3: -All of the following are characteristics of a sole proprietorship except. A separate legal entity.
There is 1 question to complete.