A proprietor has unlimited liability for the debts and obligations of the proprietorship.

Name: A proprietor has unlimited liability for the debts and obligations of the proprietorship.
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Question

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A proprietor has unlimited personal liability for any debts or obligations incurred by the proprietorship. This means that if the business cannot pay its debts, the proprietor may have to use personal assets (such as their personal savings or even their home) to pay off the business's debts.

A Proprietor Has Unlimited Liability for the Debts and Obligations