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Ravinder Is the Sole Proprietor of a Shoe Store

Question 48

Multiple Choice

Ravinder is the sole proprietor of a shoe store. He is also a partner in a restaurant, which has recently
Been sued for negligence after countless people got sick from the Salmon Alfredo dinner special. Which of
The following statements is true?


A) Because of the concept of limited liability, Ravinder can lose only what he has invested in the
Restaurant.
B) The successful plaintiffs in the restaurant action can only go after the assets of the shoe store if
Ravinder was the actual person who prepared Salmon Alfredo on the night in question.
C) Although the successful plaintiffs in the restaurant action can go after Ravinder's personal assets, they cannot go after the assets of the shoe store because the shoe store is a separate legal entity from
Ravinder.
D) The shoe store assets will only be available to the successful plaintiffs in the restaurant action if the
Shoe store is operated by Ravinder in conjunction with the restaurant.
E) If the plaintiffs win their lawsuit against the restaurant, they can look to the assets of the shoe store
To pay off the debt.

Correct Answer:

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