In sole proprietor ship how is unlimited liability is harmful to the owner?
Answers
Answer:
The risks of 'unlimited liability' and 'uncertain life' are inherent to the business form of sole proprietorship. Since the proprietor is the only person responsible for all transactions and deals of the organisation, it is impossible for him to overcome the risk of having an unlimited liability for his actions and, the life of his business being directly affected by his death, insanity, bankruptcy etc. If the proprietor intends to avoid the risks of 'unlimited liability' and 'uncertain life' then he would have to change his business form to company, partnership or any other form of business which are suitable for him.
hope it helps U dear mark me as brainlist and like me
Answer:
Answer:
The risks of 'unlimited liability' and 'uncertain life' are inherent to the business form of sole proprietorship. Since the proprietor is the only person responsible for all transactions and deals of the organisation, it is impossible for him to overcome the risk of having an unlimited liability for his actions and, the life of his business being directly affected by his death, insanity, bankruptcy etc. If the proprietor intends to avoid the risks of 'unlimited liability' and 'uncertain life' then he would have to change his business form to company, partnership or any other form of business which are suitable for him.
hope it helps U dear mark me as brainlist and like me