Question

The liability of a Sole Proprietor limited to extent ______.

Options

• Capital invested by him

• Value of the assets of the business

• Value of the business as well his all private assets

• None of the above

Answer 1

The liability of a Sole Proprietor limited to extent value of the business as well his all private assets.

Explanation:

The owner’s liability in a lone proprietorship is unlimited. This means that the owner must utilise personal assets (such as a home, money, etc.) to pay off obligations if the company is unable to do so.