Question

Unlike partnerships, if sole proprietorships find themselves in bankruptcy, they need not worry about a court of law requiring them to sell off personal assets to pay for the debts of the firm.
a) true
b) false

Answer 1

Answer:

b) false

Explanation:

As we know that the Sole proprietorships have unlimited liability while in the partnership, the partners have limited liability.  

Moreover, The proprietor is financially liable for all of the company's debts. In a court of law, a judge might require that the proprietor or owner liquidate its personal assets in order to pay the business' debts.

Hence, the given statement is false