421 U6 Wa 2
Answer problem 38. The problem has been uploaded in the attachment. Also, write a response to the problem.
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Question and Answer: Liability and Type of Organization.
- a) Sole Proprietorship.
A sole proprietorship is an organization or business that is run by a single person. These types of ventures remain one of the simplest to start with minimum legal and financial requirements. Nonetheless, besides the legal documents needed for operations, a sole proprietor does not need to report its earnings and revenue. However, a sole proprietor is responsible for the business’s liabilities. Hence, suppose Sea Green is a sole proprietor, the owner would be liable for the $10 million damage caused by the business.
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