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Since sole proprietorships have __________, personal assets may be used to pay business debts.
A.
limited resources
B.
unlimited liability
C.
earnings potential
D.
several investors


Please select the best answer from the choices provided

A
B
C
D

Sagot :

Answer:

Unlimited liability (B)

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.

chilljain33

Since sole proprietorships have unlimited liability, personal assets may be used to pay business debts.

What is a sole proprietorship?

A sole proprietorship is a type of business organization where the ownership, functioning and management of the business are in the hands of a single owner.

In case of a sole proprietorship, the owner is solely responsible for keeping the profits and also bearing the losses even in personal capacity due to the unlimited liability.

Hence, option B holds true regarding sole proprietorship.

Learn more about sole proprietorship here:

https://brainly.com/question/14555007

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