MANAGEMENT

Detailed explanation-1: -In an unlimited liability company, the owner is inextricable from the business and is personally accountable for the company’s liabilities. This also means that they are entitled to the company’s profits after taxes.

Detailed explanation-2: -Unlimited liability means that any owners/shareholders share responsibility for debts in the case that a business fails, or to settle any legal proceedings (for example, a lawsuit due to employee injury on the job).

Detailed explanation-3: -Unlimited liability refers to the full legal responsibility that business owners and partners assume for all business debts. This liability is not capped, and obligations can be paid through the seizure and sale of owners’ personal assets, which is different than the popular limited liability business structure.

Detailed explanation-4: -Solo-proprietorship is appealing because the owner bears unlimited liability. If one partner in a business should die, it is legal for the surviving partner to continue operating the business.