A sole proprietor has unlimited liability for all obligations incurred in doing business.

Name: A sole proprietor has unlimited liability for all obligations incurred in doing business.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A sole proprietorship is an unincorporated business owned and operated by one individual. The owner has unlimited personal liability for all business debts and other obligations. This means that if the business cannot pay its debts, the owner’s personal assets may be used to satisfy the obligations.

A Sole Proprietor Has Unlimited Liability for All Obligations Incurred