In a Sole Proprietorship, the Owner Is NOT Responsible for the Debts

question 59

True/False

In a sole proprietorship, the owner is NOT responsible for the debts of the business if the company is unable to pay.

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Definitions:

Raw Materials

The basic materials that are processed and converted into finished goods through manufacturing.

Direct Labor

The work performed by employees who are directly involved in the production of goods or services.

Direct Materials

The raw materials directly used in the production of a product, which can be easily traced to the finished good.

Indirect Labor

Labor costs of employees who do not directly work on the production of goods but support the production process.