Which of the following is FALSE regarding a sole proprietorship? A sole proprietor is not personally liable for obligations of the business. This is False B/C A sole proprietor is personally liable for any losses or obligations associated with the business.
Which of the following is false for a sole proprietorship business?
Answer and Explanation: The correct answer is d) Ownership form represented by stock certificates.
Which one of these statements about sole proprietor is false a sole proprietor?
Answer and Explanation: The correct answer is C. A sole proprietorship, also known as sole, refers to a business organization where independent business comprises of one person as a single owner. The owner is responsible for paying all personal income tax after earning some profits.
Which one of the following is not correct in respect of sole proprietorship?
In case of proprietorship, owner and business both are same as the proprietor is only the sole owner of the business. Hence separate legal entity concept does not applies in the proprietorship business.
Which is true about sole proprietorships?
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.
Which one of the following statements concerning a sole proprietorship is correct?
Answer and Explanation: It is correct that b) the owner of a sole proprietorship is personally responsible for all the company’s debts.
What are examples of sole proprietorship?
Examples of sole proprietors include small businesses such as, a local grocery store, a local clothes store, an artist, freelance writer, IT consultant, freelance graphic designer, etc.
What is a sole proprietorship answer?
A sole proprietorship is a business that can be owned and controlled by an individual, a company or a limited liability partnership. There are no partners in the business. The legal status of a sole proprietorship can be defined as follows: It is not a separate legal entity from the business owner.
Which of these statements is true in regard to the sole proprietorship form of business?
Answer and Explanation: The answer is D) It makes financing more difficult. Sole proprietors have a difficult time getting capital.
Which of the following is not a limitation of sole proprietorship?
There are minimum formalities required for the commencement and winding up of a sole proprietorship firm. There is no separate law governing it. Therefore, easy formation is not a limitation.
Which of the following is not the features of the sole trade?
Answer: The correct answer is Limited Liability.
What are the features of sole proprietorship?
Some of the key features of a sole proprietorship include:
- simplicity in its business structure;
- sole ownership;
- unlimited liability for the sole proprietor;
- the sole proprietor not having to share profits; and.
- minimal formalities.
Which of the following are disadvantages of sole proprietorship?
Disadvantages of sole trading include that: you have unlimited liability for debts as there’s no legal distinction between private and business assets. your capacity to raise capital is limited. all the responsibility for making day-to-day business decisions is yours.
Does sole proprietorship have limited liability?
Sole proprietors have unlimited liability and are legally responsible for all debts against the business. Their business and personal assets are at risk. May be at a disadvantage in raising funds and are often limited to using funds from personal savings or consumer loans.
Do sole proprietors pay income tax?
If you are a sole proprietor, you pay personal income tax on the net income generated by your business. You may choose to register a business name or operate under your own name or both.
Can a sole proprietorship have employees?
Sole proprietors can and do employ people. Many start with family members, but hiring people, whether the person is a relative or not, adds another layer of complexity to business management. Sole proprietors will need to pay their employees, file and remit payroll taxes, and comply with employment regulations.
Which one of the following is a disadvantage of the corporate form of business?
Disadvantages of a corporation include it being time-consuming and subject to double taxation, as well as having rigid formalities and protocols to follow. This article is for entrepreneurs who are trying to determine their business structure and whether a corporation makes sense for them.
Who are the true owners of a corporation?
The owners of a corporation are shareholders (also known as stockholders) who obtain interest in the business by purchasing shares of stock. Shareholders elect a board of directors, who are responsible for managing the corporation.
Which one of the following terms is defined as the management of a firm’s long term investments?
The answer to “which one of the following terms is defined as the management of a firm’s long-term investments?” Here clearly shows you why capital budgeting is the right answer to the questions. Capital budgeting itself is the permanent assets of the long-term investments of the management.
Who is called a sole proprietor?
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.
What are some of the main reasons sole proprietorships fail?
Failure often stems from poor financial management, inadequate analysis of the competition and failure to leverage resources to help compensate for a lack of knowledge on specific business functions, such as marketing or website design.