business and labor unit test\nwhich of the following statements is true about sole proprietorships? (1…

business and labor unit test\nwhich of the following statements is true about sole proprietorships? (1 point)\nthe owner of the sole proprietorship has limited liability.\na sole proprietorship can continue if the owner dies.\nthe owner of the sole proprietorship must report to shareholders.\na sole proprietorship is the simplest form of business organization.

business and labor unit test\nwhich of the following statements is true about sole proprietorships? (1 point)\nthe owner of the sole proprietorship has limited liability.\na sole proprietorship can continue if the owner dies.\nthe owner of the sole proprietorship must report to shareholders.\na sole proprietorship is the simplest form of business organization.

Answer

Brief Explanations:

  • In a sole - proprietorship, the owner has unlimited liability as they are personally responsible for business debts.
  • When the owner of a sole - proprietorship dies, the business generally ceases to exist.
  • There are no shareholders in a sole - proprietorship, so no reporting to them is required.
  • A sole - proprietorship is the simplest form of business organization as it has few legal formalities and is owned and operated by one person.

Answer:

A sole proprietorship is the simplest form of business organization.