A business owned by a solitary individual who has unlimited liability for its debt is called a:
A)corporation.
B)sole proprietorship.
C)general partnership.
D)limited partnership.
E)limited liability company.

Question

Quizplus · Accepted Answer

A sole proprietorship is owned and operated by a single person who has unlimited liability for the business's debt, meaning that they are personally responsible for any financial obligations or losses incurred by the company. This is different from a corporation or limited liability company, where the owners' liability is limited to the amount of their investment in the business. A general partnership involves two or more individuals sharing in the ownership and management of a business, with each partner sharing in the profits and losses and having unlimited liability. A limited partnership involves at least one general partner with unlimited liability and one or more limited partners whose liability is limited to their investment in the business.

A Business Owned by a Solitary Individual Who Has Unlimited