Which of the following is correct with respect to sole proprietorships?

A) The sole proprietorship is a separate legal entity.
B) The sole proprietor has unlimited liability.
C) The sole proprietor has limited liability.
D) Sole proprietorship exists where two or more people carry on business together with a view towards profits.
E) A sole proprietorship must be incorporated.

Unlimited Liability

The liability of the sole proprietor or the partners for all debts incurred by the business to the extent of their personal resources.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Incorporated

A legal process whereby a business entity is formed as a distinct legal entity, separate from its owners, with its own rights and liabilities.