Question

Mr. Lakshay is the owner of a small tea shop. The capital for starting business is contributed by Mr. Lakshay himself. The liability of Mr. Lakshay is ____________________.(Unlimited / Limited)​

Answer 1

Mr lakshay is unlimited

Answer 2

The liability of Mr Lakshay is unlimited.

• Lakshay has a small tea shop, which means a small firm operating as a sole proprietorship. Thus, he is individually accountable for its obligations and conduct.
• Such a liability refers to the possibility of a venture owner being held individually responsible for its obligations as well as conduct
• Thus, Lakshay has unrestricted liability and is himself s accountable for all costs.