When a business is organized as a sole proprietorship, the owner should combine his/her personal financial information with the business financial information. T/F

Question

Maggie Chambers

Business

16 May, 08:41

When a business is organized as a sole proprietorship, the owner should combine his/her personal financial information with the business financial information. T/F

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Gael Schultz · Answer 1

Answer: False

Explanation: In case of sole proprietorship, the owner and the firm are not considered to be a separate legal entity, as in the case of a corporation. Also in case of default, the private property of the owner can be used to pay off the debt.

But there is no such provision that the owner have to combine his or her personal financial information with that of an entity.

Thus, the given statement is false.