Assume You Set Up a Sole Proprietorship and Your Lawyer

question 51

Multiple Choice

Assume you set up a sole proprietorship and your lawyer tells you that as the owner you will face unlimited liability.What does that mean?

• A)You are liable for organizing the business.
• B)You could stand to lose your personal wealth if the business goes bankrupt.
• C)There is no legal responsibility of the business in case a customer sues, as the business is legally untouchable.
• D)None of these explain what unlimited liability means.