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In the eyes of the law, a sole trader and the business have:
ATwo separate boards
BDifferent tax files
CSeparate legal lives
DNo separate entity
Answer & Solution
Correct answer: D. No separate entity
1. The business has no identity of its own.
2. The owner answers for all its acts.
3. So there is no separate entity.
_Source: NCERT Class 11 Business Studies, Chapter 2, Forms of Business Organisation._
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