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Regarding a sole proprietorship, which one of the following statements is accurate?
pays taxes at the corporate tax rate.
Ownership of the firm is easy to transfer to another individual.
The ability to raise capital is limited by the owner's personal wealth.
The legal costs to form it are usually substantial.
It must pay income taxes separately from the taxes paid by the owner.
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Answer :

GinnyAnswer
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Among the statements provided regarding a sole proprietorship, the accurate statement is:
- The ability to raise capital is limited by the owner's personal wealth.

Explanation:
1. Sole proprietorships are businesses owned and operated by a single individual.
2. In a sole proprietorship, the owner is personally liable for all debts and obligations of the business, which means their personal wealth is at risk.
3. Since the business is tied directly to the owner, raising capital can be challenging as it usually relies on the owner's personal funds or loans they can secure based on their personal assets.

Therefore, the statement "The ability to raise capital is limited by the owner's personal wealth" accurately reflects a key characteristic of a sole proprietorship.