In a sole proprietorship, the owner alone bears the burden of any losses or liabilities incurred by the business. True or False?

In a sole proprietorship, the owner is indeed personally responsible for all debts and liabilities of the business. This legal structure means that there is no distinction between the owner and the business entity; thus, any financial obligations or legal issues that arise from the business directly impact the owner's personal assets.

If the business incurs debts, the owner must repay them out of personal resources, which can lead to significant financial risk. Consequently, in a sole proprietorship, the owner completely assumes the burden of losses or liabilities, making this statement true.

Other answer choices, such as those suggesting conditionality based on incorporation or jurisdiction, do not apply to sole proprietorships. In contrast, limited liability entities like corporations or limited liability companies shield owners from personal liability, which is not the case here.