Brian is the sole proprietor of Long Voyage Software,which generates maps for wilderness trips.He started the business with an initial investment of $80,000.A faulty map caused one customer to get hopelessly lost.After her rescue and recuperation,she sued Long Voyage for $5,000,000.Which of the following is true?

A) The customer can be awarded only $80,000-what the firm has available to pay.
B) The customer can be awarded $5,000,000 but can get only $80,000.
C) The customer can be awarded $5,000,000,but Brian personally won't have to pay more than $80,000.
D) If $5,000,000 is awarded,Brian will have to pay none of it.
E) If $5,000,000 is awarded,Brian is personally responsible for paying all of it.

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bhuda kannadi · Accepted Answer

Final Answer : E, Explanation :  As a sole proprietor, Brian is personally liable for all debts and obligations of the business. This means if Long Voyage Software is sued for $5,000,000 and loses, Brian is personally responsible for paying the entire amount, not just the initial investment of $80,000.

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