A sole proprietor has limited liability and cannot be forced to pay its creditors from his/her personal resources.

Name: A sole proprietor has limited liability and cannot be forced to pay its creditors from his/her personal resources.
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Question

Quizplus · Accepted Answer

A sole proprietorship does not have limited liability, meaning the owner is personally responsible for the debts and liabilities of the business. This means a creditor can go after the personal assets of the owner to pay off any outstanding debts.

A Sole Proprietor Has Limited Liability and Cannot Be Forced