A sole proprietorship is distinguished by the fact that it has only one owner.
A sole proprietorship is distinguished by the fact that it has(1 point)
Responses
limited liability.
limited liability.
only one owner.
only one owner.
higher tax burden.
higher tax burden.
multiple owners.
9 answers
James would like to create a sole proprietorship operating under the name Super Lawn Care. Which of the following is true?(1 point)
Responses
James will need to register the business with his local state as the name of his business differs from his own.
James will need to register the business with his local state as the name of his business differs from his own.
James will need to register the business with the federal government as the name of his business differs from his own.
James will need to register the business with the federal government as the name of his business differs from his own.
James does not need to register his business anywhere since a sole proprietorship never requires registry.
James does not need to register his business anywhere since a sole proprietorship never requires registry.
James will need to register the business with his local city as the name of his business differs from his own.
Responses
James will need to register the business with his local state as the name of his business differs from his own.
James will need to register the business with his local state as the name of his business differs from his own.
James will need to register the business with the federal government as the name of his business differs from his own.
James will need to register the business with the federal government as the name of his business differs from his own.
James does not need to register his business anywhere since a sole proprietorship never requires registry.
James does not need to register his business anywhere since a sole proprietorship never requires registry.
James will need to register the business with his local city as the name of his business differs from his own.
The correct statement is: James will need to register the business with his local state as the name of his business differs from his own.
In many states, if a sole proprietor operates under a name that is different from their legal name, they are typically required to register that name, often referred to as a "Doing Business As" (DBA) name.
A recent high school graduate would like to establish an online tutoring service as a sole proprietorship operating under her own name. Having never worked before and having no current income, which of the following hurdles is she likely to face?(1 point)
Responses
It will be difficult to cover start-up costs since banks will be unlikely to loan her money.
It will be difficult to cover start-up costs since banks will be unlikely to loan her money.
It will be costly and time consuming to file the paperwork associated with establishing a sole proprietorship.
It will be costly and time consuming to file the paperwork associated with establishing a sole proprietorship.
She will have to seek approval from investors before making business decisions.
She will have to seek approval from investors before making business decisions.
She will have to learn to navigate the complex taxes associated with a sole proprietorship.
Responses
It will be difficult to cover start-up costs since banks will be unlikely to loan her money.
It will be difficult to cover start-up costs since banks will be unlikely to loan her money.
It will be costly and time consuming to file the paperwork associated with establishing a sole proprietorship.
It will be costly and time consuming to file the paperwork associated with establishing a sole proprietorship.
She will have to seek approval from investors before making business decisions.
She will have to seek approval from investors before making business decisions.
She will have to learn to navigate the complex taxes associated with a sole proprietorship.
The correct response is: It will be difficult to cover start-up costs since banks will be unlikely to loan her money.
Since she has never worked before and has no current income, banks may view her as a higher risk and be less inclined to provide a loan for her start-up costs.
Question
Alejandro recently established a maintenance company as a sole proprietorship. He was hired to repair the air conditioner on a residential property, but he accidentally caused damage to the air conditioning unit valued at over $6,000 . Alejandro has only had the business for a week and has paid about $200 for tools. Which of the following is true?(1 point)
Responses
Alejandro is liable for all of the damages since the owner of a sole proprietorship does not have limited liability.
Alejandro is liable for all of the damages since the owner of a sole proprietorship does not have limited liability.
Alejandro is liable for $200 since the owner of a sole proprietorship does not have limited liability.
Alejandro is liable for 200 dollars since the owner of a sole proprietorship does not have limited liability.
Alejandro is liable for $200 since the owner of a sole proprietorship has limited liability.
Alejandro is liable for 200 dollars since the owner of a sole proprietorship has limited liability.
Alejandro is liable for all of the damages since the owner of a sole proprietorship has limited liability.
Alejandro recently established a maintenance company as a sole proprietorship. He was hired to repair the air conditioner on a residential property, but he accidentally caused damage to the air conditioning unit valued at over $6,000 . Alejandro has only had the business for a week and has paid about $200 for tools. Which of the following is true?(1 point)
Responses
Alejandro is liable for all of the damages since the owner of a sole proprietorship does not have limited liability.
Alejandro is liable for all of the damages since the owner of a sole proprietorship does not have limited liability.
Alejandro is liable for $200 since the owner of a sole proprietorship does not have limited liability.
Alejandro is liable for 200 dollars since the owner of a sole proprietorship does not have limited liability.
Alejandro is liable for $200 since the owner of a sole proprietorship has limited liability.
Alejandro is liable for 200 dollars since the owner of a sole proprietorship has limited liability.
Alejandro is liable for all of the damages since the owner of a sole proprietorship has limited liability.
The correct response is: Alejandro is liable for all of the damages since the owner of a sole proprietorship does not have limited liability.
In a sole proprietorship, the owner is personally liable for all debts and obligations of the business, including damages caused by business activities.
A small grocery store buys its produce from a local farm that operates as a sole proprietorship. Which of the following might be a concern to the grocery store management?(1 point)
Responses
As a sole proprietorship, the farm will likely go bankrupt.
As a sole proprietorship, the farm will likely go bankrupt.
The supply of produce could suddenly cease with the death or incapacitation of the farm owner.
The supply of produce could suddenly cease with the death or incapacitation of the farm owner.
The complex nature of a sole proprietorship increases the likelihood that a shipment of produce will be late.
The complex nature of a sole proprietorship increases the likelihood that a shipment of produce will be late.
The quality of the produce is likely to be lower than the produce of competing firms with different business structures.
Responses
As a sole proprietorship, the farm will likely go bankrupt.
As a sole proprietorship, the farm will likely go bankrupt.
The supply of produce could suddenly cease with the death or incapacitation of the farm owner.
The supply of produce could suddenly cease with the death or incapacitation of the farm owner.
The complex nature of a sole proprietorship increases the likelihood that a shipment of produce will be late.
The complex nature of a sole proprietorship increases the likelihood that a shipment of produce will be late.
The quality of the produce is likely to be lower than the produce of competing firms with different business structures.
The correct concern for the grocery store management is: The supply of produce could suddenly cease with the death or incapacitation of the farm owner.
In a sole proprietorship, the business is closely tied to the individual owner, and if the owner becomes incapacitated or passes away, the business may cease to operate, impacting the supply chain for the grocery store.
1 answer