Which of the following is the characteristic of a sole proprietorship? A. It can be publicly held. B. It is not taxed as an organization. C. It is the hardest business organization to create. D. It is the most expensive business organization to create. E. It can be created by multiple owners.

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Business

Madalyn Bean

21 April, 05:59

Which of the following is the characteristic of a sole proprietorship? A. It can be publicly held. B. It is not taxed as an organization. C. It is the hardest business organization to create. D. It is the most expensive business organization to create. E. It can be created by multiple owners.

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Winston Hanson · Answer 1

B. It is not taxed as an organization

Explanation:

The sole proprietorship also known as the one man business is an entity owned by one person known as the sole proprietor.

The sole proprietor at the end of each accounting period reports all the income or losses of the business in the personal income tax return.

As such, the business is in itself is not taxed separately from the sole proprietor. A sole proprietorship is not publicly held and is the simplest and least expensive form of business organization to be created.

Therefore, "B. It is not taxed as an organization" is the right option.