True or False: A sole proprietorship requires a computer network for operation.

A sole proprietorship does not inherently require a computer network for its operation. This business structure is the simplest form of business organization, consisting of one individual who owns and runs the business. Many sole proprietorships can successfully operate without any form of computerized data management or networking, relying instead on traditional methods such as pen and paper or minimal technology based on their specific needs.

While a computer network can enhance operations—especially for tasks such as customer relationship management, inventory tracking, and communication—it is not a necessity for all sole proprietorships. Many sole proprietors, especially those in service industries or small retail, can function effectively with limited technology. In contrast, specific types of businesses may benefit significantly from a computer network, but this varies widely based on the nature of the business and its operational requirements. Therefore, the assertion that a sole proprietorship requires a computer network is incorrect, supporting the conclusion that the answer is false.