Justin decided to operate his own web design firm and is leaning toward organizing it as a sole proprietorship. A factor Justin should realize is that by choosing this form of business he would be:
A) creating a business that is legally separate and distinct from himself.
B) incurring the problem of double taxation.
C) exposing himself to unlimited personal liability for the company's debts.
D) required to fill out special forms and pay proprietorship fees to get the company legally established.

Question

Quizplus · Accepted Answer

By choosing to organize his web design firm as a sole proprietorship, Justin would be exposing himself to unlimited personal liability for the company's debts. This means that if the business were unable to pay its debts, Justin's personal assets could be seized to satisfy those obligations.

Justin Decided to Operate His Own Web Design Firm and Is