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Questo esame si sostiene in inglese: le lezioni e le domande sono in inglese. L'interfaccia resta in italiano.
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Part 1 of 4
The simplest structure — one person owns and operates the business with no legal separation between owner and entity. Start-up costs are minimal and all decisions belong to the owner, but there is a major downside.
Worked example
Maria registers a food stall as a sole proprietor. The stall owes €8,000 to a supplier. If the stall cannot pay, the supplier can sue Maria personally and claim the full amount from her personal bank account — there is no legal wall between her and the business.
For the exam
1.A sole proprietor's personal savings are protected if the business cannot pay its debts.
2.A sole proprietorship's profits are taxed twice: once at the business level and once at the owner's personal level.
3.A sole proprietorship is typically the easiest and cheapest ownership structure to set up.
Study assistant
Paid students only — a preview
Why is this the correct answer?
Eliminate any option that contradicts something stated directly in the lesson, then check which one actually follows from the rule you just learned. Tell me which option confused you and I'll point to the exact line.
Exam strategy
Accounting identities (Assets = Liabilities + Equity) must hold in every scenario. Sanity-check ratio questions with round numbers.
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