"If the business assets are insufficient to pay off liabilities, his/her personal property can be called upon to pay his business debts". Which feature of sole proprietorship is highlighted in this statement?
Answer & explanation
Correct answer: option 2
Unlimited liability: The proprietor is liable/responsible for all losses arising from
business. In case the business assets are insufficient to pay off liabilities, his/her
personal property can be called upon to pay his business debts