Which of the following is correct with respect to sole proprietorships?
A) The sole proprietorship is a separate legal entity.
B) The sole proprietor has unlimited liability.
C) The sole proprietor has limited liability.
D) Sole proprietorship exists where two or more people carry on business together with a view towards profits.
E) A sole proprietorship must be incorporated.

Question

Quizplus · Accepted Answer

Sole proprietors have unlimited liability, meaning their personal assets can be used to satisfy business debts and liabilities. This is a key characteristic distinguishing sole proprietorships from corporations, which offer limited liability protection.

Which of the Following Is Correct with Respect to Sole