In a sole proprietorship,the owner is personally responsible without limitation for the liabilities incurred by the company.

Question

Quizplus · Accepted Answer

In a sole proprietorship, there is no legal distinction between the owner and the business, and therefore the owner is personally responsible for all debts and liabilities incurred by the company. This means that their personal assets may be used to pay off any outstanding debts or legal judgments against the business.

In a Sole Proprietorship,the Owner Is Personally Responsible Without Limitation