A sole proprietor faces unlimited liability.

Name: A sole proprietor faces unlimited liability.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

As a sole proprietor, the owner is personally responsible for all debts and obligations of the business. This means that there is no separation between the business and the owner, and the owner's personal assets can be used to pay off business debts. Therefore, a sole proprietor faces unlimited liability.

A Sole Proprietor Faces Unlimited Liability