Question

Yoshi operates a shoe store as a sole proprietorship. However, he is in poor health and may be unable to continue running the business. If Yoshi becomes incapacitated, his business
A. ceases to exist unless sold or taken over by Yoshi's heirs.
B. automatically continues under new management as a sole proprietorship.
C. becomes the property of the most senior employee who wishes to continue operating the firm.
D. automatically converts into a public corporation with stock sold to interested investors.

Answer 1

Answer:

A. ceases to exist unless sold or taken over by Yoshi's heirs. 

Explanation:

A sole proprietorship is a from of business which is owned by one person. The owner is usually the decision maker.

One of the disadvantages of sole proprietorship is lack of continuity. The business usually ends when the owner dies. Although , family members can take over running the business.

I hope my answer helps you.