Which of the following statements regarding sole proprietorships is false?
A. Sole proprietorships are the most common form of business entity in the U.S.
B. The cash flow generated by a sole proprietorship belongs to the owner.
C. The assets and liabilities of a sole proprietorship are held in the name of the business, not the owner.
D. A sole proprietorship has no legal identity separate from that of its owner.
Answer: C
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