Question

In which forms of business organization are the owners personally liable for all the debts of...

In which forms of business organization are the owners personally liable for all the debts of the business ?

☆ Sole proprietorship and corporation.
☆Partnership and corporation.
☆Sole proprietorship and partnerships.
☆Corporations and Ltd. companies.

which one is the correct answer (?)

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Answer #1

The correct answer is

Sole proprietorship and partnerships

Explanation

Sole properiotership refers to the firms which is idvidually owned by the person and partnerhip firm r efers to the firm which is formed when two or more partners come together and form a firm to run a business together. In both these forms of running the business, the owners are personally liable for all the debts of the business if these are not able to be paid by the business. Limited companies and corporations are different from owners and owners are not liable for the liabilities of the business. So the correct answer is

Sole proprietorship and partnerships

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