Select which combination of the statements

below regarding sole proprietorship as legal form of a business, are all

correct.

(1) 

The liability of the business

is unlimited.

(2) 

The business is required to

have their financial statements audited.

(3) 

The continued existence of the

business is restricted to the lifespan of the owner.

(4) 

The owner of the business will

have to pay tax on the taxable profit of the business as well as any other

personal income earned, according to income tax scales for individuals.

(a)  Statements (1), (2) and (3)

(b)  Statements (1), (2) and (4)

(c)   Statements (1), (3) and (4)

(d)  Statements (1), and (3)