Which of the following business organisational forms subjects the owner(s) to unlimited liability?
A) sole trader
B) limited partnership
C) company
D) public company

Question

Quizplus · Accepted Answer

A sole trader is a business organisational form where there is only one owner who is solely responsible for the debts and liabilities incurred by the business. As there is no legal distinction between the owner and the business, the owner's personal assets are also at risk. Therefore, the owner is subject to unlimited liability. Limited partnership, company and public company have some form of limitation on the liability of the owner(s).

Which of the Following Business Organisational Forms Subjects the Owner(s)