Question

1. Unlimited liability is faced by the owners of: A. corporations. B. partnerships and corporations. C. sole proprietorships and general partnerships. D. all forms of business organization.

Answer 1

Answer:

C. sole proprietorship and general partnerships.

Explanation:

Sole proprietorship refers to have the sole ownership of any business. This type of business is run by one person in which all the liabilities and assets belongs to the same person. The decisions and legal obligations are all subjected to the individual. The business is run and owned by the person being the sole trader.