Question

Which of the following statements regarding a sole proprietorship are​ correct? ​(Select all that​ apply.)

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Part 1
A.Sources of funds for a sole proprietorship typically include personal​ savings, as well as raising funds from a bank or personal loans from friends and family.
B.One advantage of the sole proprietorship is that the survival of the firm does not depend upon just one person.
C.Sole proprietorships are easy to set up with no paperwork required before the business can be opened.
D.The sole proprietor is personally responsible for all debt of the sole proprietorship.

Answer 1

A sole proprietorship is a business owned and operated by one person.

The correct statements about a sole proprietorship are: sources of funds include personal savings and raising funds from a bank or personal loans, the sole proprietor is personally responsible for all debts, and one advantage is easy setup with no paperwork.

Step-by-step explanation:

A sole proprietorship is a business owned and operated by one person. The correct statements regarding a sole proprietorship are:

1. Sources of funds for a sole proprietorship typically include personal savings, as well as raising funds from a bank or personal loans from friends and family.
2. The sole proprietor is personally responsible for all debt of the sole proprietorship.

One advantage of a sole proprietorship is that it is easy to set up with no paperwork required before the business can be opened.

However, the survival of the firm does depend on just one person.