Question

Which of the following statements about proprietorships is true? Group of answer choices A proprietorship cannot generate more than 10 million in proceeds per tax year. The owner of a proprietorship is personally liable for all the debts of the proprietorship. Proprietorships are taxable entities apart from the owners. A business can have up to thirty-five owners and still be a proprietorship.

Answer 1

Answer:

The owner of a proprietorship is personally liable for all the debts of the proprietorship.

Explanation:

A sole proprietorship is a form of business organisation that is owned by one person only.

The owner has unlimited liabilities. That is the owner of a proprietorship is personally liable for all the debts of the proprietorship.

The owner isn't separated from the business.

Sole proprietorship is limited in the amount of capital it can raise.

Sole proprietorships tends not to have a perpetual existence. The business usually ends when the owner dies.

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