Question

A characteristic of a sole proprietorship is that the owner

Answer 1

Answer:

See below.

Explanation:

Following are some of the characteristics of sole owners.

• They own the business and thus are their own boss.
• The business has no separate legal identity and any obligation of the business are directed towards the owner as well.
• There is no unlimited liability and thus the owner is legally liable.
• There are no separate taxes on profits and income. Single income tax is applicable.
• The owner of the business bears all the risk and would lose personal wealth in case of solvency.

Hope that helps.