5 Questions
What type of enterprise is a sole proprietorship?
Owned and run by one person with no legal distinction between the owner and the business entity
What is the responsibility of a sole trader for the losses and debts of the business?
Unlimited responsibility
What is the legal status of the business in a sole proprietorship?
Not a separate legal entity from the proprietor
What may a sole proprietor use as a business name?
Trade name different from their legal name
How does a sole trader receive profits from the business?
Receives all profits subject to business-specific taxation
Test your knowledge of sole proprietorships with this quiz! Explore the characteristics, advantages, and disadvantages of this type of business structure. See how much you know about the legal and financial aspects of running a sole proprietorship.
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