Match the most appropriate term to the definition.
-Responsibility of owners for debts of business

Question

Quizplus · Accepted Answer

Personal liability refers to the responsibility that owners have for the debts of the business, where they may be required to use their personal assets to satisfy business debts.

Other possible relevant choices: F (sole proprietorship) and E (partnership) may also have personal liability for business debts. G (corporation) and H (limited partnership) have limited liability, meaning that owners are not personally responsible for business debts in most cases.

Match the Most Appropriate Term to the Definition