Which one of the following statements concerning a sole proprietorship is correct?
-A sole proprietorship is designed to protect the personal assets of the owner.
-The profits of a sole proprietorship are subject to double taxation.
-The owner of a sole proprietorship is personally responsible for all of the company's debts.
-There are very few sole proprietorships remaining in the U.S. today.
-A sole proprietorship is structured the same as a limited liability company.
Answer: The owner of a sole proprietorship is personally responsible for all of the company's debts