Question

. In a sole proprietorship, the owner a. has full liability for all business debts and obligations. b. has limited liability, only liable for up to the value of her investment. c. must buy insurance to cover all liabilities. d. is liable for all business debts and obligations up to the extent of all profits taken from the business.

Answer 1

A

Step-by-step explanation:

A sole proprietorship is a type of business that is owned by one person

Characteristics

1. it is owned by one person

2. the business has unlimited liability

3. the business has limited access to capital

4. the business usually lacks continuity. this type of business usually ceases to exist when the owner dies

5. the business is usually not separated from the owner

Advantages of sole proprietorship

1. They are easy to establish
2. The owner has complete control over ownership

Disadvantages of sole proprietorship

1. It has a limited life span. The business usually ends when the owner dies
2. the owner has an unlimited liability