Which One of the Following Statements Concerning a Sole Proprietorship

Multiple Choice

Which one of the following statements concerning a sole proprietorship is correct?

A) The life of the firm is limited to the life span of the owner.
B) The owner can generally raise large sums of capital quite easily.
C) A formal charter is required to form a new proprietorship.
D) The company must pay separate taxes from those paid by the owner.
E) The legal costs to form a sole proprietorship are quite substantial.