Which of the following is false regarding a sole proprietorship?The owner has unlimited personal liability for the firm's debtsIt is difficult to transfer ownershipIt is somewhat complex to form and operateIts life is limited to the life of its owner

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

Which of the following is false regarding a sole proprietorship? The owner has unlimited personal liability for the firm's debts O It is difficult to transfer ownership O It is somewhat complex to form and operate Its life is limited to the life of its owner

Which of the following is false regarding a sole proprietorship? The owner has unlimited personal liability for the firm's debts O It is difficult to transfer ownership O It is somewhat complex to form and operate Its life is limited to the life of its owner

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Is it reasonable to immediately cease operations if a business is operating at a loss? Why?
When a corporation is dissolved voluntarily, no winding up of the business is necessary. True False
May the fruit vendor recover the money he is owed from Paletas by Paloma's shareholders? No, because sole proprietorships do not have any shareholders. OYes, if Paletas by Paloma does not have sufficient funds to pay the fruit vendor. Yes, because there is no limited liability in sole proprietorships. O No, because shareholders in a sole proprietorship enjoy limited liability.
If a director allows a company to continue to trade indefinitely and the company is placed into liquidation, what are the potential liabilities for a director?
Transferring corporate assets to shareholders for less than fair market value is a form of Multiple Choice looting. piercing. authorizing. capitalizing.
One of the disadvantages associated with sole proprietorships is that: raising working capital is difficult. acquiring total ownership of the business's finances is not easy. O creating a sole proprietorship is a complicated process. obtaining licenses and permits is difficult. making autonomous business decisions is difficult.
How can the separate entity concept benefit the owner and the business
1. When a business ceases to operate and its inventories are disposed of a gain on the inventories will be treated as a capital gain unless an election is made by the selling taxpayer True or False 2. When a business ceases to operate and its accounts receivable are disposed of with the other business assets any loss on the receivables will be treated as a capital loss unless a joint election is made by the purchaser and seller. True or False
Which of the following is true about this statement: "In a sole proprietorship, the owner's personal assets are at risk if the business is not successful." Is this true? a) No, personal assets are protected by sole proprietorship laws. b) Yes, there is no protection for personal assets with sole proprietorships. c) No, personal assets are only at risk with corporations. d) Yes, this is true for all forms of business.
What advantages does a sole proprietor offer? What is a major drawback of this type of organization?
owners have no personal liability under which legal business structure? a. corporation b. a partnership c. a sole proprietorship d. there is liability in every legal business structure

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