Unlimited liability means:

A. each partner in a partnership can make decisions independently.

B. if a sole proprietorship fails the creditors will make the owner sell personal property to pay for debts.

C. all stockholders must vote on all management decisions.

D. if a sole proprietorship fails the creditors cannot take the owner's personal pr

Question

Business

Serenity Small

11 June, 07:06

Unlimited liability means:

A. each partner in a partnership can make decisions independently.

B. if a sole proprietorship fails the creditors will make the owner sell personal property to pay for debts.

C. all stockholders must vote on all management decisions.

D. if a sole proprietorship fails the creditors cannot take the owner's personal pr

+3

Answers (1)

Know the Answer?

Moshe Rasmussen · Answer 1

B. if a sole proprietorship fails the creditors will make the owner sell personal property to pay for debts.

Explanation:

The unlimited liability is the liability in which the sole proprietorship and general partners are fully liable to pay its financial or business debts

If any condition arises due to which they are not able to pay the debt than the other person to have the right to agree the owner sell his or her property through which he or she can pay the debts to him or her

In the given situation, the second option is the most appropriate option as it denotes the same situation as compared to the above explanation