1. All of these are true regarding sole proprietorships, except: a. A sole proprietorship is a business...
Question:
1. All of these are true regarding sole proprietorships, except:
a. A sole proprietorship is a business owned by one person.
b. A sole proprietorship is a separate entity for legal or tax purposes.
c. In a sole proprietorship assets and liabilities of the owner must be kept separate from the business.
d. In a sole proprietorship business income is taxed at the personal tax rate.
2. All of these are true regarding partnerships, except:
a. A partnership has limited liability.
b. A partnership has limited life.
c. A partnership is not taxed as a separate entity.
d. A partnership is similar to a proprietorship.
3. A partnership agreement specifies:
a. How much the owners will invest.
b. The continuous life of the partnership.
c. The number of stocks issued and outstanding.
d. The articles of incorporation.