Which of the following is true of a sole proprietorship business?
A) A sole proprietor has limited flexibility in managing the business.
B) A sole proprietor has unlimited liability and high financial risk.
C) A sole proprietorship that is operated under the proprietor's name must be registered.
D) A sole proprietorship is a complex business to organize.

Question

Quizplus · Accepted Answer

A sole proprietor has unlimited liability, meaning they are personally responsible for all debts and obligations of the business, which entails high financial risk.

Which of the Following Is True of a Sole Proprietorship