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1. Only a small number of business owners operate as sole proprietors.

True False

2. Sole proprietors have limited liability for claims against their businesses.

True False

3. Corporate shareholders have limited liability for claims against the corporation.

True False

4. Many sole proprietors are covered by pension plans so they don't need to do a lot of personal retirement planning.

True False

5. Various charitable plans can be used to meet a sole proprietor's goals in retirement.

True False

6. Sole proprietors are often concerned with effective ways to turn their illiquid business assets into liquid assets.

True False

7. Capital gains are not a big concern for sole proprietors.

True False

8. An operating sole proprietorship may be transferred to a charitable remainder trust.

True False

9. A sole proprietor reports all of the business income and deductions on his personal tax return.

True False

10. An appraisal is required to substantiate a charitable gift of a sole proprietorship.

True False

Basic Quiz - 4.10.1 Proprietor Businesses