In a Sole Proprietor Ownership, If Business Assets Are Not

question 45

Multiple Choice

In a sole proprietor ownership, if business assets are not enough to pay business debts, then personal assets, such as the sole proprietor's house, personal investments, and retirement plans can be used to pay the debt. This is called ________.

• A)unlimited liability
• B)limited liability
• C)non-liability
• D)double taxation

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Definitions:

Beneficiary

An individual or entity entitled to receive benefits or assets from a will, trust, insurance policy, or other instruments.

Risk

The potential for loss, damage, or any other undesirable outcome, often associated with decisions or activities.

Premium

An additional amount paid for a service or product, or the level of coverage or benefits in an insurance policy.

Insured

A person or entity covered under an insurance policy to protect against certain risks or losses.