In which ownership and management alternative is the owner personally liable with regard to legal claims from suppliers,creditors,and others?

Question

Quizplus · Accepted Answer

In a sole proprietorship, the owner is personally liable for any legal claims from suppliers, creditors, and others. This means that their personal assets can be used to pay off any debts incurred by the business. In the other options, such as franchising, corporation, and partnership, there is usually some sort of legal separation between the owner and the business entity, which limits personal liability.

In Which Ownership and Management Alternative Is the Owner Personally