The Mystery of Sole Proprietorship Revealed

Is there a separation between the business and the individual in a sole proprietorship?

Choose the answer:

O No. In a sole proprietorship there is no separation between the business and the individual.

Yes. In a sole proprietorship there is a separation between the business and the individual.

Maybe. It depends if the business has employees.

Final answer:

In a sole proprietorship, there is no separation between the business and the individual.

Explanation:

In a sole proprietorship, there is no separation between the business and the individual. This means that the business and the owner are considered one and the same for legal and tax purposes. The owner has full control and responsibility for the business, including its debts and liabilities.