Any suit against the business or its employees can lead to unlimited personal liability for the owner of a sole proprietorship.

Question

Any suit against the business or its employees can lead to unlimited personal liability for the owner of a sole proprietorship.​

Quizplus · Accepted Answer

As there is no legal distinction between the business and the owner in a sole proprietorship, any legal action taken against the business can result in the owner being held personally liable for any damages or debts incurred. This means the owner's personal assets such as savings, property, and investments may be at risk.

Any Suit Against the Business or Its Employees Can Lead