Question

what is the owner's lability in proprietorship firm?
a) limited
b)no liability
c) unlimited
d) limited & unlimited​

Answer 1

Sole proprietors have unlimited personal liability. There is no legal distinction between the owner and the business. This means that creditors of the business and individuals who have other claims against the owner can reach both the owner's business and personal assets..

Answer 2

Answer:

c ) Unlimited

Explanation:

Sole proprietors have unlimited liability . This implies that the owner is personally responsible for payment of debts in case the assets of the business are not sufficient to meet all the debts.

• A major disadvantage of sole proprietorship is that the owner has unlimited liability. If the business fails, the creditors can recover their dues not merely from business the business Assets, but also from the personal assets of Proprietor.