Brian is the sole proprietor owner of Long Voyage Software, which generates maps for wilderness trips.He started the business with an initial investment of $80, 000.A faulty map caused one customer to get hopelessly lost.After her rescue and recuperation, she sued Long Voyage for $5, 000, 000.Which of the following is true?
A)The customer can be awarded only $80, 000--what the firm has available to pay.
B)The customer can be awarded $5, 000, 000, but can get only $80, 000.
C)The customer can be awarded $5, 000, 000, but Brian personally won't have to pay more than $80, 000.
D)If $5, 000, 000 is awarded, Brian will have to pay none of it.
E)If $5, 000, 000 is awarded, Brian is personally responsible for paying all of it.

Question

Quizplus · Accepted Answer

As a sole proprietor, Brian is personally liable for all business debts and obligations, meaning he could be responsible for the full $5,000,000 if awarded.

Brian Is the Sole Proprietor Owner of Long Voyage Software