Question

mcq
a sole proprietor has
(a) limited liability
(b) unlimited liability
(c) no liability for debts
(d) joint liability​

Answer 1

a sole proprietor has a limited liability

Answer 2

Answer:

A sole proprietor is someone who has unlimited liability. Hence, the correct answer to the abovementioned question is option B which states, "Unlimited liability"

Explanation:

A sole proprietor is a one-man show. In simpler words, he is said to be the sole owner of the business. He may have people helping him but they are not the owners of that specific company. Hence, we can safely state that the liabilities are unlimited and he is the sole person responsible for those liabilities. Not just liabilities but also assets.

Thus, we can safely conclude that options a, c and d are not the correct options. Only option B is the only correct answer.

Hence, option B states, that "unlimited liability" is the correct option for the abovementioned question.

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