Question

Personal assets may be used to pay business debts.

Since sole proprietorships have
A. limited resources
B. unlimited liability
C. earnings potential
D. several investors

Answer 1

Answer: B

Explanation: I read the transcript so yea

Answer 2

The correct answer is B (Unlimited liability).

Step-by-step explanation:

In a sole proprietorship, the business is not treated as a separate entity from the owner, thus when the owner incurs debts and is unable to clear, personal assets may be used.