Unlimited Liability Is an Advantage of a Sole Proprietorship

question 43

True/False

Unlimited liability is an advantage of a sole proprietorship.

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Definitions:

Registered Office

The official address of a company or organization, registered with the appropriate legal authorities, where official documents are sent.

Good Faith

A principle that emphasizes honesty, fairness, and sincerity in the execution of obligations or dealings.

Defect In Incorporation

Errors or omissions that occur during the process of forming a corporation, which could affect the entity's legal status.

Corporation By Estoppel

A principle where a business is treated as a corporation for legal purposes, even if it failed to complete formal incorporation processes, due to its actions or representations to third parties.