Aretha operates the beauty salon as a sole proprietorship. If a customer is inju

Question

Aretha operates the beauty salon as a sole proprietorship. If a customer is injured while and her salon, the extent of Aretha’s potential liability could best be described as:
Unlimited her personal assets can be taken to satisfy the debt of the salon
Limited by federal law to $100,000
Limited to the assets of the business
Limited to the amount of business liability insurance she carries on the salon Aretha operates the beauty salon as a sole proprietorship. If a customer is injured while and her salon, the extent of Aretha’s potential liability could best be described as:
Unlimited her personal assets can be taken to satisfy the debt of the salon
Limited by federal law to $100,000
Limited to the assets of the business
Limited to the amount of business liability insurance she carries on the salon
Unlimited her personal assets can be taken to satisfy the debt of the salon
Limited by federal law to $100,000
Limited to the assets of the business
Limited to the amount of business liability insurance she carries on the salon

Explanation / Answer

The extent of Aretha’s potential liability could best be described as:

- Unlimited her personal assets can be taken to satisfy the debt of the salon.

The biggest downside to operating a business as a sole proprietor is the liability you are subject to. If your business incurs debts that it cannot pay from the profits, you are personally liable and responsible for payment.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.