Colorado Nursing Home Administrators (NHA) Practice Exam 2025 – The All-in-One Guide to Master Your Certification!

Question: 1 / 400

When is it NOT considered a change of ownership for a sole proprietorship?

Forming a corporation

When a sole proprietorship transforms into a corporation, it involves a significant structural change that goes beyond the scope of ownership adjustments. This process typically includes new legal entities, distinct ownership structures, and various regulatory requirements that differentiate it from a simple change in ownership. Therefore, forming a corporation from a sole proprietorship is considered a substantial transformation and not just a change in ownership.

Options B, C, and D are not considered a change of ownership for a sole proprietorship. Transferring less than 50% ownership, changing the business name, or dissolving the proprietorship are all actions that involve modifications within the existing structure of a sole proprietorship without fundamentally altering its legal form or status.

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Transfer of less than 50% ownership

Change in business name

Dissolution of proprietorship

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