Accountıng I Deneme Sınavı Sorusu #1313544
Which of the following is the definition of "sole proprietorship"?
A sole proprietorship is that owners of corporation are not personally liable for the debts of the entity |
A sole proprietorship is a large company or group of companies authorized to act as a single entity and recognized as such in law. |
A sole proprietorship is a form of business where two or more people share ownership. |
A sole proprietorship is a business owned and run by one person |
A sole proprietorship is a system in which each partner still has unlimited responsibility for all business’s debt |
A sole proprietorship is a business owned and run by one person. They are often small type businesses (e.g. auto repair shops, used-books stores etc.). Usually a small amount of capital is needed and the owner is entitled to all profits. The owner is also personally responsible for all debts and liabilities of business. In short, there is no distinction between the business and its owner, but the accounting records of the business activities are kept separate from the personal records of its owner. D is the right answer.
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