liability under which
personal property of the proprietor is also
liable to pay the claims of the business
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liability under which
personal property of the proprietor is also
liable to pay the claims of the business
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Answer:
Unlimited liability
Explanation:
Unlimited liability means in case of heavy losses if the assets of the business are I sufficient to pay off the debts the personal assets of proprietor will be used to settle the debts
Answer:
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. As such the owner's personal possessions such as his/her personal car and other assets could be sold for repaying the debt.