A sole proprietor is personally liable for the debts of the business.

Name: A sole proprietor is personally liable for the debts of the business.
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Question

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A sole proprietorship is an unincorporated business owned and run by a single person. As a result, the owner is personally liable for all business debts and obligations. This means that if the business cannot pay its debts, the owner's personal assets may be seized to pay off those debts.

A Sole Proprietor Is Personally Liable for the Debts of the Business