Which of the following is true of a sole proprietorship?
A)A sole proprietor has limited flexibility in managing the business.
B)A sole proprietor has unlimited liability and high financial risk.
C)A sole proprietorship operated under the proprietor's name must be registered.
D)A sole proprietorship is a complex business to organize.

Question

Quizplus · Accepted Answer

A sole proprietor has unlimited liability, meaning they are personally responsible for all the debts and obligations of the business. This can lead to high financial risk if the business incurs debts or liabilities that it cannot pay.

Which of the Following Is True of a Sole Proprietorship