All of the following statements about management of a sole proprietorship is correct except Multiple Choice • The sole proprietor has sole discretion to bind the business. • The sole proprietor has no oversight committees. • The sole proprietor has a fiduciary duty to the employees. • The sole proprietor may change to another form of entity at the sole proprietor’s will.

• • The sole proprietor has a fiduciary duty to the employees.

Explanation:

The sole proprietor may decide to have employees, however, only the sole proprietor is personally liable for the business contracts has the ability to bind the business contractually. This type of business also does not have oversight committee. Sole proprietorship is considered the most flexible form of business as the sole proprietor may change the business to a corporation or partnership as he/she likes when the business begins to grow. The sole proprietor has all management duties and there are no fiduciary duties owed.