Which scenario applies to a sole proprietor's buy-sell plan?

In the context of a sole proprietor's buy-sell plan, the primary objective is to ensure the continuity of the business after the owner's death. A buy-sell agreement is a legally binding contract that outlines what happens to a business in the event of an owner's death, disability, or retirement. This agreement allows for a smooth transition of ownership, ensuring that the business can continue operating without interruption.

When a sole proprietor passes away, the buy-sell plan facilitates the transfer of ownership to designated beneficiaries or remaining owners, securing the future viability of the business. This is crucial not only for maintaining the business's operations but also for preserving its value and ensuring that it is managed according to the wishes of the deceased.

While addressing business debts or securing loans can be important aspects of business planning, a buy-sell plan specifically focuses on ownership transition and continuity of the business, making option C the most relevant in this case.