A wedding party hired a sole proprietorship to cater their wedding. In this situation the sole proprietorship is a corporation and the employee who handled the job is a partner. If the sole proprietorship is a corporation and its employee poisons the cake, the shareholders of the corporation are liable for the poisoned cake.

True
False

According to the IRS, any time a sole proprietor hires someone who isn't an independent contractor, they must obtain an Employer Identification Number (EIN).

The statement above here is False as the shareholders of the corporation are not liable for the poisoned cake.

What exactly does sole ownership imply?

A sole proprietorship is the most straightforward and typical business structure.

There is no separation between the business and you, the owner because it is an unincorporated business owned and operated by one person.

The sole proprietorship is the most straightforward business structure. A sole proprietorship is not a legally recognized business entity. It simply refers to the owner of a company who is personally liable for its debts.

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https://brainly.com/question/1428023

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