Question: Which statement is wrong? 1. A sole proprietorship is in ownership of one private person. Its activities are limited to trading. The person is reliable

Which statement is wrong?

1. A sole proprietorship is in ownership of one private person. Its activities are limited to trading. The person is reliable with all her/his personal assets for the company.

2. A sole proprietorship is in ownership of one private person. The person is reliable with all her/his personal assets for the company.

The tax liability is with the owner.

3. A sole proprietorship is in ownership of one private person. The person is reliable with all her/his personal assets for the company.

Increases of the company’s value are taxable profit for the owner.

4. A sole proprietorship is in ownership of one private person. The person is reliable with all her/his personal assets for the company.

The establishment does not require legal action.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Practice Questions!

cial 1) A sole proprietorship is owned by: A) one person. es asta! sy po los oj B) two of more persons. C) shareholders. D) bankers. 2) Which of the following organization forms for a business does...

Chapter 1. Sample Assignment Instructions Find a sample document or article online related to a main topic in the chapter. In the Discussion Section, respond to two classmates and post the title &...

Question 1: A business that is owned by one individual is a __________. Question content area bottom Part 1 A. sole proprietorship B. master limited partnership C. corporation D. partnership E....

means that you are responsible not only for the investment that you have in the business, but you are also personally responsible for all liabilities of the business. This is a distinct disadvantage...

Which of the following business organizational form(s) subject(s) the owner(s) to unlimited liability? Question 1 options: Sole proprietorship Corporation General partnership Both sole proprietorship...

Chapter 26 "The legal form of a business can have great bearing on the successful operation and result-ing profitability of the business venture. Accordingly, it is important to have a general...

disinterested in being involved in the day to day operations of the business, and also do not want to commit anything more than their initial investment to the project. The nature of the product...

THE CASE FOR EDUCATING LEGALLY-AWARE ACCOUNTANTS Robert A. Prentice\" Accounting is not a trade; it is a learned profession.' Its practitioners must have the attitude and perspective of educated...

Side Agreements Business Law Individual Assignment I. Introduction The Commercial Companies Law of the United Arab Emirates (Federal Law No. 8 of 1984, as amended) provides for seven types of...

Final Submission: Memorandum With Appendix In Module Nine, you will complete all necessary tax forms according to Section III of the critical elements. You will then submit a comprehensive memorandum...

Q3: The signal shown below, is not bandlimited, but it can be approximated to be band limited signal. Assuming a suitable criterion, for approximation, determine the corresponding minimum sampling...

Company XYZ has production line with a max. capacity (Actual O/P) of 230,000 ton. During 2017 and 2018, the capacity of the factory barely covered the market demand. Thus, it seems critical to...

2 ) Luczo and the buyout team plan to finance their acquisition of Seagate s operating assets using a combination of debt and equity. How much debt would you recommend that they use? Why?

What steps could a company take to avoid making product design and marketing mistakes when introducing new products into East Germany? How would you go about hiring a plant manager for a facility you...