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If a Sole Proprietorship Fails to Meet Its Obligations to Its

Question 18

Multiple Choice

If a sole proprietorship fails to meet its obligations to its creditors,then:


A) the creditors have a legal right to take possession of the personal assets of the owner(s) .
B) the creditors are restricted in what rights they have over the personal assets of the owner(s) .
C) the liability of the sole proprietorship is restricted to the value of the original issue price.
D) the rights of the creditors are restricted to the financial assets of the owner(s) .

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