Asked by Jordan Cornelius on May 05, 2024
Verified
In a sole proprietorship, the proprietor bears the burden of any liabilities incurred by the business enterprise.
Sole Proprietorship
A type of business structure where a single individual owns, manages, and is responsible for all aspects of the business, including debts.
Proprietor
The owner of a business or property.
Liabilities
Financial obligations or debts owed by a person or company to another entity, which must be settled over time.
- Discern the impact that the choice of business entity has on liability and tax obligations.
Verified Answer
EV
Elyssa VasquezMay 10, 2024
Final Answer :
True
Explanation :
In a sole proprietorship, the owner and the business are legally considered the same entity, meaning the proprietor is personally responsible for all liabilities and debts of the business.
Learning Objectives
- Discern the impact that the choice of business entity has on liability and tax obligations.
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