In a Sole Proprietorship,the Owner Is Fully Liable for All

question 119

Short Answer

In a sole proprietorship,the owner is fully liable for all business debts of the company.This is called ____________________ liability.

Identify and differentiate between various causes of failure in startups (e.g., process inadequacy, deviance, inattention, lack of ability).

Recognize the role of emotional management in learning from failures.

Comprehend the significance of experimentation and feedback in the entrepreneurial process.

Understand the spectrum of failure from blameworthy to praiseworthy and the role of ethical boundaries in failure.

---

Definitions:

Opportunity Cost

The cost of the next best alternative forgone as a result of making a decision.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods.

Marginal Product

The increase in output that results from employing one more unit of a factor of production.

Income Effect

How an individual's or economic income shift influences the demand for goods or services.