Which of the following statements is true about sole proprietorships?(1 point)

Question

Responses

The sole proprietorship can continue if the owner dies
The sole proprietorship can continue if the owner dies

The owner has limited liability.
The owner has limited liability.

A sole proprietorship is the simplest form of business organization
A sole proprietorship is the simplest form of business organization

Answer 1

The true statement about sole proprietorships is:

A sole proprietorship is the simplest form of business organization.

The other statements are false because:

• A sole proprietorship does not continue if the owner dies; it typically ends with the owner's death.
• The owner of a sole proprietorship has unlimited liability, meaning they are personally responsible for all debts and obligations of the business.