Asked by Angela Vazquez on May 23, 2024
Verified
Sole proprietors have limited liability for the sole proprietorship's debts.
Sole Proprietors
A sole proprietorship is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.
Limited Liability
The legal principle that limits each owner's financial loss to the amount of money that individual has invested in a company.
- Identify the consequences of having no limit on liability in business entities like sole proprietorships and general partnerships.
Verified Answer
MS
Muneeba ShahidMay 27, 2024
Final Answer :
False
Explanation :
Sole proprietors have unlimited liability, meaning they are personally responsible for all the debts and obligations of the business.
Learning Objectives
- Identify the consequences of having no limit on liability in business entities like sole proprietorships and general partnerships.
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