Among the options provided regarding sole proprietorships, the correct statement is:
b the sole proprietor is personally liable for the liabilities of the business.
A sole proprietorship is the simplest form of business structure, where one individual owns and operates the business. This means that the owner is personally responsible for all debts and obligations incurred by the business. In contrast, option a is incorrect because a sole proprietorship involves only one individual, not multiple owners. Option c is also misleading, as a sole proprietorship does not face a separate business tax; instead, profits are taxed as personal income of the owner. Thus, the personal liability of the owner is a defining characteristic of a sole proprietorship.