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

Question

Zack Silva

Business

21 April, 00:03

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

+3

Answers (1)

Know the Answer?

Augustus Rich · Answer 1

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

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) trueb) false

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