If a Sole Proprietorship Fails, the Owner May Lose Whatever

question 47

True/False

If a sole proprietorship fails, the owner may lose whatever was invested in the business; however, the owner's personal assets are not at risk.

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Definitions:

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public services and government activities.

Minimum Wage

The lowest legal hourly pay that employers can offer to workers.

Legal Price

The price set by legal authority or regulation, often differing from market-driven prices.

Price Floor

A government or regulatory imposed minimum price above the equilibrium, typically set to protect producers or sectors from too low of prices.