Which of the Following Is FALSE

Multiple Choice

Which of the following is FALSE?

A) A sole proprietor is exclusively responsible for performing all contracts entered into in connection with the business.
B) Sole proprietors must include any income or loss from the sole proprietorship business in their income for income tax purposes.
C) A sole proprietor is vicariously liable for torts of employees in the course of the sole proprietorship business.
D) A sole proprietor cannot be an employee of the sole proprietorship business.
E) A sole proprietorship is a cautious method of forming of business as the proprietor has no legal liability for tort of contract and the proprietorship business is a separate legal entity from the proprietor.