True or False: In sole proprietorships, the business entity and the person running it have a legal differentiation.

In a sole proprietorship, the business and the individual running it are legally the same entity. This means that there is no distinction between the owner's personal assets and the business's assets in terms of liability. If the business incurs debts or is sued, the owner is personally liable for those obligations, which can put their personal assets at risk. This lack of separation is a fundamental characteristic of a sole proprietorship and contrasts with other business structures, such as corporations or limited liability companies, where legal differentiation exists. Therefore, the answer is false, as there is indeed no legal differentiation between the person running a sole proprietorship and the business itself.