The most that the owner of a sole proprietorship can lose, as a result of business debts or lawsuits, is the amount he/she has invested in the business. O True O False

Q: Which of the following is false regarding a sole proprietorship? The owner has unlimited personal…

A: There are several forms of business organisation, in which businesses can be run and maintained.…

Q: In an S Corporation are the unit holders liable for busin

A: Yes, they are liable for business losses too if they fulfill these requirements.

Q: What are the possible actions when a business becomes insolvent?

A: Insolvency occurs when a person or business is unable to service the debt to lenders as debts come…

Q: For purposes of the qualified business income (QBI) deduction, qualified business income does not…

A: Qualified Business Income deduction refers to that income that is related to trade and business. In…

Q: Which of the following is deductible from gross income? O Loss from a business receivable from a…

A: Gross income : It is the income which is taxable before allowing any deductions.   Deduction are…

Q: What is the legal relationship of a sole proprietorship to its owner? A. The owner and the sole…

A: Sole proprietorship is a business structure where an individual owns and operates the business, with…

Q: From a tax perspective, and disregarding other issues such as limited liability, does it always make…

A: A sole proprietorship is a business owned and controlled only by one person. Because it is a…

Q: Which of the following is not deductible from business income? Group of answer choices Casual…

A: Business income is earned revenue that includes all money generated by an entity's operations.…

Q: Two disadvantages of a proprietorship are (1) the relative difficulty ofraising new capital and (2)…

A: A sole proprietorship is a form of business entity which is owned and managed by an individual is…

Q: The shareholder is usually liable for the corporation’s debts.

A: Shareholders refer to a person or entity who is owning shares in the company’s stock. One…

Q: Which of the following statements is false concerning forms of businessorganization? a. A…

A: There are four forms of business organization: Sole proprietorship Partnership firm Joint-stock…

Q: A business entity that has no ;ax liability because the entity's income is passed through to the…

A: A business entity is an independent organization established under the law to engage in commercial…

Q: A common disadvantage of a sole proprietorship is a) that the owner must share profits with others.…

A: A Sole Proprietorship: It is a type  of enterprise  that is owned and run by one person and no legal…

Q: The biggest disadvantage of a sole proprietorship is A It is the simplest type of business to start…

A: Sole proprietorship is oldest  form of business under which an individual is able to conduct…

Q: This business starts with relatively small amount of capital and the owner proprietor is only person…

A: The business may be started with one person or multiple persons.

Q: What is a disadvantage of the corporate form? O Profit O Revenue Owners have very little influence…

A: Eliminating the incorrect options:A. Profit: Profit is not a disadvantage of the corporate form of…

Q: A benefit of a sole proprietorship is that liability is limited to that of the business financial…

A: A sole proprietorship is the simplest form of business that an individual can do or operate. It is…

Q: Which type of business will most likely have problems with insufficient funds for business? Sole…

A: Partnership is an arrangement by two or more parties to manage and operate a business and share its…

Q: If the assets of a corporation are not sufficient to satisfy the claims of its creditors, the…

A: The system followed by corporations for governing, directing and controlling them represents their…

Q: All the profits of a sole proprietorship are taxed as current income of the owner even if they are…

A: Sole Proprietorship : in sole proprietorship the the business is run by only one person. The owner…

Q: 1. Which one of the following statements concerning a sole proprietorship is correct? The…

A: Sole proprietorship is a form of business organisation, in which single person manages and invest…

Q: Which type of business will most likely have problems with insufficient funds for business?…

A: Business formation is a procedure through which an individual and group can start manufacturing…

Q: The sole proprietorship is the form of ownership with the least ability to accumulate capital. O…

A: Sole proprietorship is a form of business organisation, which is run by single person. Single person…

Q: When a corporation is dissolved due to fraud, graft, and corruption, can innocent employees and…

A: Liabilities are referred, when the money is borrowed and there is obligation to pay that sum of…

Q: True or false: The corporation, and not the owners, are viewed as owning the resources and as owing…

A: Question: The corporation, not the owners, are viewed as owing the resources and as owing the debts…

Q: One of the disadvantages associated with sole proprietorships is that: raising working capital is…

A: Introduction:Sole proprietorships- Under this type of business, there is only one owner i.e., the…

Q: When a business ceases to operate and its inventories are disposed of a gain on the inventories will…

A: Capital gain is the profit one earns on the sale of an asset like stocks, bonds or real…

Q: Which of the following is true about this statement: "In a sole proprietorship, the owner's personal…

A: The question is based on the concept of Financial Accounting. Sole proprietorship is a type of…

Q: owners have no personal liability under which legal business structure? a. corporation b. a…

A: Sole proprietorship: It is one form of simple business that is owned and maintained by a single…