When the owner of a sole proprietorship dies, what becomes of the business? a. The employees take over the business. b. It ceases to exist unless the heirs take it over or sell it. c. It is automatically auctioned to the highest bidder. d. It ceases to exist, and no one may legally take it over. e. It may continue existing but only under a new name.

Question

Kylee Turner

Social Studies

6 August, 01:33

When the owner of a sole proprietorship dies, what becomes of the business? a. The employees take over the business. b. It ceases to exist unless the heirs take it over or sell it. c. It is automatically auctioned to the highest bidder. d. It ceases to exist, and no one may legally take it over. e. It may continue existing but only under a new name.

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Answers (1)

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Karly · Answer 1

b. It ceases to exist unless the heirs take it over or sell it.

Explanation:

The sole proprietor carefully plans his estate, his business can survive in some form after his death, either in the hands of his heirs or through a third-party purchaser.