Which two sentences describe characteristics of a sole Proprietorship?

a. The owners are called partners.

b. The owner accepts full financial liability..

c. The business is treated as a separate tax entity.

d. All profits go to the individual who owns the business.

Answer:- b, d

The following sentences describe the characteristics of a sole proprietorship:

• The owner accepts full financial liability.
• All profits go to the individual who owns the business.

A sole proprietorship is a company that has just one owner. All of the company’s obligations and debts are personally owed by the owner. All business profits are likewise given to the owner.

The second and third clauses do not describe a sole proprietorship. A sole proprietorship is not considered a separate tax business and is not required to have partners. A sole proprietor’s taxes are reported on their personal tax return.