In a partnership or sole proprietorship, do you believe at least one partner and, in the case of a sole proprietorship, that unlimited liability should be permitted? why or why not?
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The primary downside to operating your business as a sole proprietorship is that a sole proprietor is personally liable for all of the debts of the business. This is known as having “unlimited liability.”
To elaborate, if anybody has a reason to sue your business, they’ll be able to come after your personal assets, not just the money that you have in your business checking account. This means that, if the suit is for enough money, you could end up losing almost all of your personal possessions — your car, your savings, and possibly even your home
To elaborate, if anybody has a reason to sue your business, they’ll be able to come after your personal assets, not just the money that you have in your business checking account. This means that, if the suit is for enough money, you could end up losing almost all of your personal possessions — your car, your savings, and possibly even your home
Answered by
1
The primary downside to operating your business as a sole proprietorship is that a sole proprietor is personally liable for all of the debts of the business. This is known as having “unlimited liability.”
To elaborate, if anybody has a reason to sue your business, they’ll be able to come after your personal assets, not just the money that you have in your business checking account. This means that, if the suit is for enough money, you could end up losing almost all of your personal possessions — your car, your savings, and possibly even your home.
To elaborate, if anybody has a reason to sue your business, they’ll be able to come after your personal assets, not just the money that you have in your business checking account. This means that, if the suit is for enough money, you could end up losing almost all of your personal possessions — your car, your savings, and possibly even your home.
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