How will the form of a business be legally described in a lending agreement if the business does not have the capacity to borrow capital in its own right?
A) as an unlimited proprietorship
B) as a sole proprietorship
C) as an unlimited corporation
D) as a sole corporation

Question

Quizplus · Accepted Answer

If the business does not have the capacity to borrow capital in its own right, it can only be legally described as a sole proprietorship, which means the individual owner is personally liable for any debt or obligations of the business.

How Will the Form of a Business Be Legally Described