Question

Which one of the following statements correctly applies to a sole proprietorship?A. The business entity has an unlimited life.B. The ownership can easily be transferred to another individual.C. The owner enjoys limited liability for the firm's debts.D. Debt financing is easy to arrange in the firm's name.E. Obtaining additional equity is dependent on the owner's personal finances.

Answer 1

Answer:

B: the ownershipcan be easily transferred to another individual

E. Obtaining additional equity is dependent on the owner's personal finances

Explanation:

B:the ownershipcan be easily transferred to another individual because the owner has the full authority and control over the business and he can make any decision at any time. he is not liable to pay other peoples investement or capital

E. Obtaining additional equity is dependent on the owner's personal finances because the owner is the only person investing in the company and relies on personal fiances or loans obtained on his own account