Unlimited liability exists when

Question

Quizplus · Accepted Answer

Unlimited liability means that the owner(s) of a business are personally responsible for any debts or liabilities incurred by the business. This means that if the business cannot pay its debts, the owner's personal assets can be seized to pay off these debts. Option D correctly describes this concept. Option A is incorrect as it describes taxation, not liability. Option B is incorrect as it suggests that the business will dissolve when the owner dies, which is not necessarily true. Option C is incorrect as corporations generally have limited liability for their owners.

Unlimited Liability Exists When