The sole proprietor has unlimited liability; his or her total investment in the business, but not his or her personal assets, can be taken to satisfy creditors.

Name: The sole proprietor has unlimited liability; his or her total investment in the business, but not his or her personal assets, can be taken to satisfy creditors.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a sole proprietorship, the owner has unlimited liability, meaning both business and personal assets can be used to satisfy business debts.

The Sole Proprietor Has Unlimited Liability; His or Her Total