The legal responsibility for debts incurred by a sole proprietorship falls upon
A)the shareholders.
B)the partners of the sole proprietorship.
C)the owner.
D)the creditors.
E)the managers.

Question

Quizplus · Accepted Answer

The owner of a sole proprietorship is personally responsible for all debts incurred by the business. This means that if the business cannot pay its debts, the owner's personal assets may be used to satisfy the obligations.

The Legal Responsibility for Debts Incurred by a Sole Proprietorship