Which of the Following Statements Is NOT True Regarding the Advantages

Multiple Choice

Which of the following statements is NOT true regarding the advantages and disadvantages of a sole proprietorship?

A) A sole proprietorship can be created without formal agreements or state filings.
B) The proprietor reports income from the business on a personal tax return.
C) The proprietor alone bears liability for the losses.
D) It is usually easy for sole proprietorships to raise capital.