In which form of business is a single individual responsible for the repayment of any debts?

Question

Quizplus · Accepted Answer

In a proprietorship, the business is owned and operated by a single individual, who is personally responsible for all debts and liabilities incurred by the business. This means that if the business were to go bankrupt or be sued for damages, the owner's personal assets could be seized to satisfy any outstanding debts. By contrast, in a corporation or partnership, the business is a separate legal entity that is responsible for its own debts and liabilities, shielding the individual owners or shareholders from personal financial risk.

In Which Form of Business Is a Single Individual Responsible