Question

Which of the following statement is false in respect of a sole proprietorship
A)a sole proprietor enjoys considerable degree of freedom in making business function.
B) profit entirely belong to the sole proprietor
C). Owner is liable only up to the capital invested in the business.
D) owner can sell his share in business is raise funds.

Answer 1

Which of the following statement is false in respect of a sole proprietorship

Explanation:

C .Owner is liable only up to  the capital invested in the business.

Because owner is the only person who have invested the capital in his business  and also responsible for the loss and the profit whatever occurs he is the one who will either gain or loss.