Intro to Paralegal Studies Practice

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Prepare for the Intro to Paralegal Studies Test. Review with multiple choice questions and flashcards, each with detailed explanations and hints. Get exam-ready with comprehensive study insights!

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In a sole proprietorship, who owns the business?

Multiple co-owners share responsibilities
A single lawyer that owns all assets and profits
A corporation that is publicly traded
A partnership where each owner has equal share

The correct answer is: A single lawyer that owns all assets and profits

In a sole proprietorship, the business is owned by a single individual, which means that one person owns all assets and profits generated by the business. This structure allows the owner complete control over the business's operations and decision-making processes. Unlike partnerships or corporations, which involve multiple owners or shareholders, a sole proprietorship is distinctly defined by its singular ownership. The owner is personally liable for any debts or obligations the business incurs, and there are no formal ownership shares as seen in partnerships or corporations. The simplicity of this ownership structure is one of the main advantages of a sole proprietorship, as it requires fewer formalities and permits the owner to retain sole control over the business's profits and losses.