Which statement about a sole proprietorship is true?

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Multiple Choice

Which statement about a sole proprietorship is true?

Explanation:
A sole proprietorship is a business owned and run by a single person. This setup means one person makes all decisions, keeps all profits, and is personally responsible for all debts and obligations. It is not a separate legal entity from the owner, unlike a corporation, and it isn’t run by the government. So the statement that describes the business as being completely owned by one person best fits a sole proprietorship. The other descriptions refer to partnerships (two or more owners), corporations (a separate legal entity), or government-run organizations (public sector).

A sole proprietorship is a business owned and run by a single person. This setup means one person makes all decisions, keeps all profits, and is personally responsible for all debts and obligations. It is not a separate legal entity from the owner, unlike a corporation, and it isn’t run by the government. So the statement that describes the business as being completely owned by one person best fits a sole proprietorship. The other descriptions refer to partnerships (two or more owners), corporations (a separate legal entity), or government-run organizations (public sector).

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