Which of the following statements is true of the sole proprietorship form of business organization?
What is sole proprietorship
A sole proprietorship is the simplest form of business organization. It is owned and operated by one individual, and there is no legal separation between the business and the owner. This means that the owner is personally liable for all of the debts and liabilities of the business.
Legal filings are required to establish a sole proprietorship. Sole proprietorships are not required to register with the government, but they may need to obtain certain licenses and permits depending on the type of business they are operating.
Which of the following statements is true of the sole proprietorship form of business organization? A. Legal filings are required to establish a sole proprietorship. B. A sole proprietorship is a separate legal entity. C. The owner of a sole proprietorship is not personally liable for all obligations of the business. D. A sole proprietorship is not a taxable entity. The true statement about the sole proprietorship form of business organization is: C. The owner of a sole proprietorship is personally liable for all obligations of the business.