Question

Sal owns Textbooks Plus, a sole proprietorship that sells textbooks and other school supplies. When Sal dies, Textbooks Plus will automatically:
a. pass to the state.
b. dissolve.
c. pass to Sal’s heirs.
d. be offered for sale to its creditors and competitors.

Answer 1

Answer:

Based on this particular situation, if the owner of Textbooks Plus (Sal) dies, the goods of the company pass automatically to Sal's heirs. The correct answer is C.

Explanation:

I chose C because the company is a sole proprietorship, a private one, and that means that everything that the owner of the company has as president, when he dies, goes to his personal heirs. He doesn't have partnerships, so his personal heirs will heir his debts and credits, also the goods of the company.