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12 February, 12:24

A sole proprietorship:

A. provides limited liability for its owner.

B. involves significant legal costs during the formation process.

C. has an unlimited life.

D. has its profits taxed as personal income.

E. can generally raise significant capital from nonowner sources.

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  1. 12 February, 16:03
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    D. has its profits taxed as personal income.

    Explanation:

    Characteristics of a sole proprietorship:

    1. It Is Owned by one person

    2. The onwer has an unlimited liability.

    3. It doesn't usually have an unlimited life. It usually ends with the death of the owner.

    4. Profits are taxed as personal income.

    5. It is very easy to form. It requires little legal cost.
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