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 ability to raise capital is limited by the owner's personal wealth.
B) The proprietorship pays taxes at the corporate tax rate.
C) The ownership of the firm is easy to transfer to another individual.
D) The company must pay income taxes separate from the taxes paid by the owner.
E) The legal costs to form a sole proprietorship are quite substantial.