A sole proprietorship is best deﬁned as a business owned by:
A) A single individual who has limited liability for the ﬁrm's debts.
B) A single individual who has unlimited liability for the ﬁrm's debts.
C) Individuals who enjoy limited liability.
D) One or more individuals who have agreed to accept unlimited liability for the ﬁrm.
E) An individual for less than ten years.

Question

Quizplus · Accepted Answer

A sole proprietorship is a business owned by a single individual who has unlimited liability for the firm's debts. This means that the owner's personal property can be used to pay off business debts if the business is unable to do so.

A Sole Proprietorship Is Best Deﬁned as a Business Owned