If a Sole Proprietor Closes a Business That Has No

question 33

True/False

If a sole proprietor closes a business that has no assets but owes money to a creditor,the owner is personally liable to pay the creditor.

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Definitions:

Compensatory Stock Option Plan

A plan offered by a company to its employees as a form of compensation, which grants them the option to buy the company’s stock at a predetermined price.

Exercise Price

The price at which an option holder can buy (call option) or sell (put option) the underlying security or commodity.

Stock Warrants

Securities that give the holder the right to purchase a company's stock at a specified price before a certain date.