GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The government
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The owner
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The partners
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The stock holders
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Detailed explanation-1: -A sole proprietor is the beneficiary of all profits. All risks are to be borne by the sole proprietor.
Detailed explanation-2: -A sole proprietor is someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.
Detailed explanation-3: -Sole Proprietorship The sole proprietor receives all the profits from the business, and bears all the losses, which may exceed the proprietor’s investment in the business.
Detailed explanation-4: -Sole proprietors are traders who run the business alone without engaging in any partnership, he/she gets the entire profit as well as are solely liable for losses suffered by such a business.