A sole proprietor's liability for business debts is limited to the value and assets of the sole proprietorship.

Question

Quizplus · Accepted Answer

A sole proprietor is personally responsible for all business debts and liabilities. This means that their personal assets can also be used to pay off business debts if the assets of the sole proprietorship are not sufficient. Therefore, a sole proprietor has unlimited liability for business debts.

A Sole Proprietor's Liability for Business Debts Is Limited to the Value