Ralph Florez owns and operates his own business as a sole proprietor. Recently his company was sued. The fact that Ralph has organized his business as a sole proprietorship means that Ralph is protected against any financial loss if the company loses the lawsuit.

Question

Quizplus · Accepted Answer

As a sole proprietor, Ralph is personally liable for any financial losses incurred by his business, including legal judgments or settlements from lawsuits. He does not have the protection of limited liability like a corporation or LLC.

Ralph Florez Owns and Operates His Own Business as a Sole