Question

IThe Supreme Court has ruled that certain business records of a(n) _______ could be considered private papers because she is an alter ego of the owner.

O LLC
O C-corp
O sole proprietor
O separate taxable entity

Answer 1

The Supreme Court deems that business records of a sole proprietor could be considered private because the business is directly associated with its owner, unlike corporations or LLCs.

Step-by-step explanation:

The Supreme Court has ruled that certain business records of a sole proprietor could be considered private papers because she is an alter ego of the owner. In the context of a private company, which is frequently owned and operated on a day-to-day basis by the individuals who own it, a sole proprietorship is the most integral to the owner, as the business is not a separate legal entity from the owner.

Sole proprietorship is a business structure where the individual owner is responsible for all debts, liabilities, and entitled to all profits generated by the business. Since a sole proprietorship is indistinguishable from its owner, the Supreme Court recognizes that the business's records could reflect the private papers of the individual.

It differs from corporations and limited liability companies (LLCs), which are separate legal entities that offer liability protection to the owners. These structures are considered distinct from the individuals who own and manage them, resulting in different legal treatment regarding privacy of records.