Bill starts Castaway to market a new line of uniquely designed fishing gear. Delta Bank loans $50,000 to Bill for the project. The bank is most likely to recover the amount of the loan from Bill's personal assets
A) if Bill provides a complete, accurate record of business transactions.
B) if the loan is not subject to an agreement that imposes personal liability.
C) if Bill's business is a sole proprietorship.
D) under no circumstances.

Question

Bill starts Castaway to market a new line of uniquely designed fishing gear. Delta Bank loans $50,000 to Bill for the project. The bank is most likely to recover the amount of the loan from Bill's personal assets
A) ​if Bill provides a complete, accurate record of business transactions.
B) ​if the loan is not subject to an agreement that imposes personal liability.
C) ​if Bill's business is a sole proprietorship.
D) ​under no circumstances.

Quizplus · Accepted Answer

If Bill's business is a sole proprietorship, he is personally liable for the debts of the business, meaning the bank can recover the loan from his personal assets.

Bill Starts Castaway to Market a New Line of Uniquely