Edwin runs an antique retail shop that is registered as a sole proprietorship.The liability exposure of Edwin's business ________.
A) is limited to the amount he has invested on fixed assets
B) refers to the amount invested on variable assets
C) is more if the size of transactions is limited
D) refers to the total fixed investments made by him
E) is unlimited for the business's personal obligations

Question

Quizplus · Accepted Answer

A)The owner has unlimited personal liability for the business's financial obligations in a sole proprietorship. Edwin's business is a sole proprietorship in this case.
B)The owner has unlimited personal liability for the business's financial obligations in a sole proprietorship. Edwin's business is a sole proprietorship in this case.
C)The owner has unlimited personal liability for the business's financial obligations in a sole proprietorship. Edwin's business is a sole proprietorship in this case.
D)The owner has unlimited personal liability for the business's financial obligations in a sole proprietorship. Edwin's business is a sole proprietorship in this case.
E)The owner has unlimited personal liability for the business's financial obligations in a sole proprietorship. Edwin's business is a sole proprietorship in this case.

Edwin Runs an Antique Retail Shop That Is Registered as a Sole