Which two sentences describe characteristics of a sole proprietorship? The owners are called partners. The owner accepts full financial liability. The business is treated as a separate tax entity. All profits go to the individual who owns the business.

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Manuel Koch

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26 September, 08:51

Which two sentences describe characteristics of a sole proprietorship? The owners are called partners. The owner accepts full financial liability. The business is treated as a separate tax entity. All profits go to the individual who owns the business.

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Genevieve · Answer 1

a. The owner accepts full financial liability

b. All profits go to the individual who owns the business.

Explanation:

Sole Proprietorship is a business that is formed or created by one person. There is no distinction or separation between a sole proprietor and his or her business.

The benefits of Sole Proprietorship includes:

a. The sole proprietor has complete control over his business as well as the decision making process of the business

b. All the profits of the business belongs to the sole proprietor

c. A sole proprietorship is easy to start up.

Some major disadvantages of sole proprietorship includes:

a. It is very difficult to obtain capital for sole proprietorship.

b. A sole proprietor is liable for all the debts of his or her business.