INTRODUCTION TO ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which type of business ownership provides unlimited liability for its owners?
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Nonprofit
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Sole proprietorship
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C Corporation
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LLC
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Explanation:
Detailed explanation-1: -The reason business owners of sole proprietorships and partnerships are subject to unlimited liability is because both business structures do not create a separate legal entity. The owners and the business are one entity.
Detailed explanation-2: -Unincorporated businesses such as sole traders have unlimited liability. In other words, the individual who has started the business will be personally liable for business debts until they choose to incorporate.
There is 1 question to complete.