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Lucy Has Organized Her Craft Shop as a Sole Proprietorship

Question 100

Multiple Choice

Lucy has organized her craft shop as a sole proprietorship.Her sister has warned Lucy about the legal principle holding her responsible for paying off all of the debts of the business.What is the name of this principle?


A) unlimited liability
B) limited liability
C) privity
D) unrestricted debt
E) accountability

Correct Answer:

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