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Which of the following is NOT a feature of a sole proprietorship form of business organisation? |
Unlimited Liability Ownership of a single person Separate Legal entity Easy formation and closure |
Separate Legal entity |
The correct answer is option (3) - Separate Legal entity. Separate Legal entity is NOT a feature of a sole proprietorship form of business organization.In a sole proprietorship, the business and the owner are not considered separate legal entities. They are treated as one and the same under the law. Therefore, the owner's personal assets remain at risk for business liabilities. |
