Question

Which two sentences describe characteristics of a sole proprietorship?
The owners are called partners.
The owner accepts full financial liability.
The business is treated as a separate tax entity.
All profits go to the individual who owns the business.

Answer 1

Answer:

the option two and four is right

Answer 2

These sentence are right about characteristics of a sole proprietorship :

• The owner accepts full financial liability

• All profits go to the individual who owns the business.

Definition of sole proprietorship

A sole proprietorship is an unincorporated firm with a single owner who pays personal income tax on earnings. Sole proprietorships are popular among small business owners and contractors because they are simple to form and deconstruct owing to a lack of government participation.

Five criteria of a sole proprietorship

• The only proprietor of the company

• Liability is limitless.

• There is no legal entity

• The sole decision maker

• It is possible to complete the transaction at any moment.

In sole proprietorship, the owner accepts full financial liability and all profits go to the individual who owns the business.