CUET Preparation Today
| "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? |
Limited area of operation Unlimited liability Individual ownership Individual financing |
| Unlimited liability |
| 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 |
