Question

Which of the following is not true about running a sole proprietorship?

You have unlimited personal liability.


You are exempt from your city’s zoning laws.


There are minimal start-up costs.


You can respond quickly to changes in the marketplace.

Answer 1

Answer: You are exempt from your city’s zoning laws.

Explanation:

Sole proprietorship refers to a form of business in which an individual owns, manages and controls all the business activities. The owner pays personal income tax on profits earned from the business. An individual that operates sole proprietorship business is called as a sole proprietor or sole trader.

Answer 2

The correct answer to this question, should be:

B.) You are exempt from your city's zoning laws.


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