What type of liability do sole proprietors have for the debts of their companies?
A) shared liability
B) unlimited liability
C) limited liability
D) no liability

Question

Quizplus · Accepted Answer

Sole proprietors have unlimited liability for the debts of their companies, which means that they are personally responsible for all of the business debts and obligations. This means that if the company cannot pay its debts, the sole proprietor's personal assets can be used to cover the debts, including their savings, investments or property.

What Type of Liability Do Sole Proprietors Have for the Debts