Unlimited liability holds a sole proprietor personally responsible for all the debts of the business.

Name: Unlimited liability holds a sole proprietor personally responsible for all the debts of the business.
Brand: Quizplus
Rating: 4.7 (40 reviews)

Question

Quizplus · Accepted Answer

Unlimited liability is a characteristic of sole proprietorships where the owner is personally responsible for all the debts and obligations of the business. There is no separation between the business and the owner, and therefore the owner's personal assets can be used to pay off business debts.

Unlimited Liability Holds a Sole Proprietor Personally Responsible for All