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

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.

Sole proprietors have limited liability for the sole proprietorship's debts.

Definitions

Learning Objectives

Learning Objectives

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