Intro to Business Week 6 P1 Explore

What defines a sole proprietor?

• A business with multiple owners.

• A business that has formed a separate legal entity.

• A business where the owner and the business are legally indistinguishable.

• A business that requires a significant formation fee.

What is required if a sole proprietor wishes to operate under a trade name different from their own legal name?

• Forming a corporation.

• Obtaining a DBA (Doing Business As).

• Registering with the federal government.

• Paying a fixed $50 fee.

What is a significant drawback of operating as a sole proprietor?

• High formation fees.

• Extensive ongoing maintenance responsibilities.

• Lack of personal liability protection.

• Inability to use a trade name.