In 1984, Suzanne Pogell wanted to learn to sail, but she could find no one to teach her. She finally did convince someone to teach her to sail and, after mastering sailing, she started an all-woman sailing school called "Womanship" as a sole proprietorship. Which of the following represents the meaning of unlimited liability to Suzanne?
A) She usually has to put in an unlimited number of hours.
B) She is fully liable for all business debts.
C) She must have liability insurance.
D) She has unlimited access to funds.

Question

Quizplus · Accepted Answer

As a sole proprietorship, Suzanne has unlimited liability, meaning that she is fully liable for all business debts. This means that her personal assets could be at risk if the business were to accumulate debt or legal issues.

In 1984, Suzanne Pogell Wanted to Learn to Sail, but She