Which statement is true about sole traders?

Which statement is true about sole traders?

• A. They have unlimited liability
• B. They must be owned by two people
• C. They can qualify for government help and have sole ownership
• D. They must publish financial accounts publicly

Answer: (C)

Sole traders are businesses owned and run by one person who keeps the profits and makes the decisions alone. A key practical fact is that they have sole ownership of the business, and they can still access government help or support programs aimed at small businesses. This combination is what makes the statement true: it correctly describes ownership by a single person and the possibility of government assistance. The other statements clash with how sole traders work: they are not required to be owned by two people, they do not normally have to publish financial accounts publicly, and while unlimited liability is a real characteristic, the statement that emphasizes sole ownership and eligibility for government help captures two important, true aspects together.

Sole traders are businesses owned and run by one person who keeps the profits and makes the decisions alone. A key practical fact is that they have sole ownership of the business, and they can still access government help or support programs aimed at small businesses. This combination is what makes the statement true: it correctly describes ownership by a single person and the possibility of government assistance. The other statements clash with how sole traders work: they are not required to be owned by two people, they do not normally have to publish financial accounts publicly, and while unlimited liability is a real characteristic, the statement that emphasizes sole ownership and eligibility for government help captures two important, true aspects together.