Any debts or damages incurred by a firm organized as a sole proprietorship are:
A)limited to the amount the owner has invested in the firm.
B)the sole responsibility of the owner.
C)normally covered by liability insurance.
D)paid for out of a reserve contingency fund that sole proprietors are required by law to set up.

Question

Quizplus · Accepted Answer

As a sole proprietorship, the owner is personally liable for any debts or damages incurred by the business. The owner's personal assets could be at risk to cover these costs.

Any Debts or Damages Incurred by a Firm Organized as a Sole