When a Business Is Set Up as a Sole Proprietorship

question 250

True/False

When a business is set up as a sole proprietorship, the owner of the business faces limited liability.

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Definitions:

Written Document

A tangible representation of information or contractual terms that has been penned or printed on paper or similar material, serving as evidence or record.

Agent Negotiation Rule

A principle that stipulates how agents can negotiate on behalf of their principals to create binding agreements.

Statute of Frauds

A legal provision requiring certain types of contracts to be written and signed to be enforceable.

Discharged Debt

A debt that has been fully paid off or legally settled, releasing the debtor from further obligations.