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The liability of a sole proprietor is limited to the assets of the business. - Commercial Applications

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Question

The liability of a sole proprietor is limited to the assets of the business.

Options

  • True

  • False

MCQ
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Solution

False

Explanation:

In a sole proprietorship, the owner is completely responsible for everything. If a business doesn’t have enough assets to cover its debts, the owner’s personal property, such as their home, savings, gold, and so on, can also be used to settle the debts.

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Chapter 2: Ownership Structures - Sole Proprietorship and Joint Hindu Family Business - EXERCISES [Page 30]

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C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 2 Ownership Structures - Sole Proprietorship and Joint Hindu Family Business
EXERCISES | Q I. 23. | Page 30
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