Question

How much protection from liability does a sole proprietorship offer?
(a) none, there is no distinction between the owner and the company
(b) the greatest protection since the company is separate from the owner
(c) limited liability, like that of a corporation
(d) some liability, like that of a partnership

Answer 1

Answer:

The reason business owners of sole proprietorships and partnerships are subject to unlimited liability is because both business structures do not create a separate legal entity. The owners and the business are one entity.