Sole proprietors have _________ for the debts of their companies.
A)no liability
B)limited liability
C)unlimited liability
D)shared liability

Question

Quizplus · Accepted Answer

Sole proprietors have unlimited liability for the debts of their company, meaning that their personal assets can be used to satisfy any outstanding debts or financial obligations of the business. This is the main disadvantage of operating as a sole proprietorship.

Sole Proprietors Have _________ for the Debts of Their Companies